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India spices open weak on fresh arrivals, output.


Date: 05-02-2010
Subject: India spices open weak on fresh arrivals, output

MUMBAI, Feb 5 (Reuters) - India's jeera futures opened weak on Friday on pressure from arrivals and higher output estimates this season due to favourable weather in the growing regions, analysts said.

At 10.47 a.m., benchmark March jeera NJEH0 was down 0.95 percent at 12,006 rupees per 100 kg.

Arrivals are expected to pick up in the next few days and would be peaking in March-April.

Low export demand also weighed on prices, analysts added.

Jeera exports in December 2009 dropped by 28 percent to 2,500 tonnes on year.

PEPPER:

Indian pepper futures also opened weak due to pressure from new arrivals, analysts said.

Losses were, however, capped by good domestic demand, they added.

India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks, a Reuters poll of eight traders, exporters and analysts showed.

Indian December pepper exports stood at 1,750 tonnes, down 32 percent on year.

At 10.46 a.m., benchmark February pepper NPEG0 was down 0.95 percent at 13,445 rupees per 100 kg.

TURMERIC:

India's turmeric futures traded under pressure on worries over rising arrivals in the physical market against subdued domestic demand and weak exports, analysts said.

Estimates of higher output also weighed on prices, they added.

At 10.46 a.m., the benchmark April turmeric contract NTMJ0 was down 0.84 percent at 6,940 rupees per 100 kg. The contract has fallen over 10 percent since hitting the contract high of 7,834 on Jan. 4.

Turmeric exports in December remained flat at 3,250 tonnes from 3,350 tonnes a year ago.

Arrivals usually start in mid-January in small quantities. It gains momentum from March and continues through June.

Source : REUTERS


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