Turmeric hits contract low on output view; jeera down.

MUMBAI: Turmeric futures hit a fresh contract low on Thursday depressed by poor demand and prospects of higher crop due to an increase in acreage, analysts said. Farmers sowed tumeric in larger areas this season after a shortage pushed up prices sharply last year, while higher-than-normal rains have also boosted output estimates.

"Sentiment is weak due to hopes of higher production... current weather conditions are helpful for the growth of the crop," said Veeresh Hiremath, analyst at Karvy Comtrade. At 2:39 p.m., the most active September turmeric was down 1.02 percent at 12,434 rupees per 100 kg after hitting a contract low of 12,350 rupees per 100 kg. In April-July 2010, India's turmeric exports were 18,350 tonnes, down 16 percent from the same period year ago, according to the Spices Board.

In the Nizamabad spot market, turmeric was down 198 rupees at 13,782 rupees. Area under turmeric in southern states of Andhra Pradesh and Karnataka has risen 21.5 percent and 19 percent, respectively, in 2010/11, two government officials had told Reuters. The two states account for more than half the total production in India, the world's biggest producer of the spice. J

India jeera futures fell half a percent, weighed by subdued domestic and overseas demand though a decline in arrivals restricted the losses, analysts said. Good rainfall in the country, which analysts say, may help the sowing operations in the upcoming season also added to the pressure. "Demand is weak at the moment but it is expected to pick up in the coming days due to the festive season. Prices should not fall much as supply is also limited," said Hiremath of Karvy Comtrade. Festivals like Ganesh Chathurthi and Diwali take place between September and November.

At 2:40 p.m., the most active September jeera was down 0.46 percent at 13,469 rupees per 100 kg. Jeera exports in April-July 2010 had fallen 19 percent from a year ago to 13,500 tonnes. In India, jeera is cultivated during winter from October to December, and harvested during February-April.

India pepper futures were steady as poor supplies in spot and lower stocks prompted buying at lower levels offsetting sluggish export demand, analysts said. At 2:40 p.m., September pepper was up 0.03 percent at 19,790 rupees per 100 kg. The contract has fallen nearly 8 percent in the last seven sessions. In the Kochi market, spot pepper fell 94 rupees to 19,753 rupees per 100 kg. India's pepper exports in April-July 2010 rose 2 percent from the year-ago period to 6,750 tonnes.

Source : economictimes.indiatimes.com