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India pepper, turmeric seen up on festive demand.


Date: 23-09-2009
Subject: India pepper, turmeric seen up on festive demand
MUMBAI, Sept 23 (Reuters) - Indian jeera futures are expected to open steady on Wednesday as bargain hunting on low levels is expected to support, but lacklustre overseas demand is seen capping gains, analysts said.

Bargain buying has been continuing after prices fell over 10 percent since August.

Fundamentals remain weak on subdued demand from exporters after global producers harvested a bumper crop.

The benchmark October contract NJEV9 ended up 3.49 percent at 11,309 rupees per 100 kg the previous session.

PEPPER

Indian pepper futures are seen opening up as firm domestic demand during the ongoing festive season along with low stocks and reviving exports may support sentiment, analysts said.

However, the new crop from Brazil is expected to keep gains under check, they added.

The benchmark October contract NPEV9 ended up 1.81 percent at 14,440 rupees per 100 kg in the previous session.

 Turmeric futures, which hit contract highs in the previous session, may extend gains tracking the spot market, which was at a premium to the futures due to a supply crunch and festival demand, analysts said.

The country's peak festival season is from August to October, when demand for spices usually goes up. Traders said stocks were inadequate as output fell sharply last year due to lower acreage.

The October contract NTMV9 ended up 3.23 percent at 7,709 rupees per 100 kg in the previous trading session.

Expectations of a rise in production this year may prompt profit-taking later in the day, they said.

India's turmeric output in 2009/10 is likely to spike as area under the spice expanded and August rains ensured yields would be near normal despite spotty rains in June-July, traders and exporters said.

Source : REUTERS 

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