India pepper futures are likely to open down on Thursday as favourable weather in growing regions raises hopes of higher output and as export demand continues to be sluggish, analysts said.
Pepper exports from India during the April-October period fell 35 percent to 14,750 tonnes as the credit crunch hit major importers, according to the Spices Board.
Demand remains lacklustre as buyers are expecting a further fall in prices ahead of fresh arrivals, they said.
Arrivals at Indian markets will begin next week and continue until February.
However, low inventories and short-covering may restrict losses, they said.
The benchmark January contract NPEF9 ended at 10,982 rupees per 100 kg, down 0.62 percent, in the previous session.
TURMERIC:
Turmeric futures may also open down due to weak demand and as rains in main producing states brightens crop prospects, analysts said.
The southern states of Andhra Pradesh and Tamil Nadu received unseasonal rains earlier this week, analysts said.
The benchmark December contract NTMZ8 ended up 0.47 percent at 3,633 rupees per 100 kg the previous session.
JEERA:
Jeera futures are likely to open up on rains in major growing regions and low warehouse stocks, analysts said.
Rains in Saurashtra region, which contributes about 30-35 percent, during the sowing season is likely to hurt output.
However, weak export demand and expected higher production may cap gains, they said.
Jeera exports fell 18.5 percent in October due to low overseas demand as a fallout of the global economic slowdown, according to the Spices Board.
The benchmark January jeera NJEF9 ended at 10,618 rupees per 100 kg, up 0.88 percent the previous session.
CHILLI:
Chilli futures are likely to extend gains from the previous session tracking spot rates, which are expected to rise due to a shortage of good quality produce, analysts said.
The December contract NCBZ8 ended up 0.75 percent at 5,401 per 100 kg the previous session.
However, gains may be capped by tepid export demand. Exports fell 21 percent to 10,000 tonnes in October 2008, compared with the same period a year ago, data from the Spices Board showed.
Source : Reuters India