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India spices trade mixed, turmeric falls over 3 pct.


Date: 16-10-2009
Subject: India spices trade mixed, turmeric falls over 3 pct
MUMBAI, Oct 16 (Reuters) - Indian jeera futures traded up on Friday as firm spot demand continued to support prices, analysts said.

Gradual increase in export demand also aided the upside, they said.

However, rainfall in the growing regions may weigh on prices during the day, they said.

Rains in Gujarat and Rajasthan, the main growing areas, have sparked hopes about a better global crop next season.

At 11.18 a.m., benchmark November jeera NJEX9 was up 1.99 percent at 12,280 rupees per 100 kg.

PEPPER

Pepper futures traded steady as pressure from the Brazilian crop was offset by support from low stocks, analysts said.

The Brazilian crop which has been selling at discount to Indian rates in the international market has pressured prices down.

At 11.20 a.m., benchmark November pepper NPEX9 was up 0.29 percent at 13,960 rupees per 100 kg.

TURMERIC:

Turmeric futures opened higher and hit contract highs, but failed to hold gains due to profit-taking after gaining about nine percent in past two sessions, analysts said.

At 11.21 a.m., the November contract NTMX9 was down 3.3 percent at 8,562 rupees per 100 kg, after hitting a contract high of 9,030 rupees.

In physical market demand was robust amid concerns rains earlier this month may damage the crop, they said. Major turmeric producing states like Andhra Pradesh, Karnataka and Maharashtra received heavy rains earlier this month.

Traders said stocks were inadequate as output fell sharply last year due to lower acreage.

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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