MUMBAI, Sept 14 (Reuters) - Indian turmeric futures extended the previous session's gains to hit new contract highs on Monday supported by improvement in festive demand in the spot market and dwindling stockpiles, analysts and traders said.
The country's peak festival season runs 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 September contract NTMU9 on NCDEX hit a new contract high of 8,211 rupees per 100 kg.
In Nizamabad, a major spot market in Andhra Pradesh, the price climbed by 102 rupees to 8,042 rupees per 100 kg.
"Supply situation is much stretched. Stockpile is depleting and new arrivals may get delayed by a month," said Jitendra Nagla, a trader based in Nizamabad.
Cultivation was delayed due to weak monsoon rains in June-July, he said.
Gains were capped by hopes rains in growing areas earlier this month will improve yields, 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.
Following are the closing prices of turmeric futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd.
Source : REUTERS