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India pepper seen down on weak demand; turmeric up.


Date: 26-05-2009
Subject: India pepper seen down on weak demand; turmeric up
 MUMBAI, May 26 (Reuters) - Indian jeera futures are likely to open steady on Tuesday as pressure from slow demand and trader worries about a better global crop is expected to be offset by buying on the futures counter, analysts said.

The futures prices have been trading at a discount to the spot and buying is expected to establish price parity, analysts said.

Spot prices in the Unjha market on Monday ended at 11,478.95 rupees per 100 kg.

However, overall fundamentals continued to remain weak on low domestic demand and a good crop from Syria and Turkey, the leading producers of the spice, analysts said.

The benchmark June contract NJEM9 ended down 0.16 percent at 10,973 rupees per 100 kg the previous session. It may open around 10,990-11,010 rupees, an analyst said.

PEPPER:

India pepper futures are likely to open down on slow overseas and domestic demand, analysts said.

Internal demand is thin as prices of spices in the country plunge during the monsoon season as traders refuse to stock huge quantities fearing damage.

Exports have been declining, after Vietnam, the largest producer and exporter, started selling pepper in the international market at cheaper rates due to a crop surplus.


Source : REUTERS INDIA

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