Turmeric up on bargain buying; jeera on spot demand.

MUMBAI: India's turmeric futures rose over 3 percent on Friday on bargain buying triggered by a decline in arrivals and spot demand, analysts said. "Trend is firm. Arrivals have come down. June contract may jump to 14,900 rupees per 100 kg in short term," said Sudha R. Acharya, analyst at Kotak Commodities Services Ltd.

The most active June turmeric was up 3.53 percent at 14,485 rupees per 100 kg. In Nizamabad, a major spot market in Andhra Pradesh, turmeric traded steady at 14,718 rupees per 100 kg. Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board.

JEERA: India's jeera futures were up on some local demand and weak arrivals, analysts and traders said. "Trade is very range bound. Daily arrivals have come down to 3,000-4,000 bags (60 kgs). Local demand is good but overseas demand has not picked up yet," said a trader from Unjha.

New crop has been dwindling at the markets as famers are holding back stocks awaiting a rebound in prices while buyers are picking up the spice at the current softer prices, traders said. The most active June jeera contract was up 0.12 percent to 12,170 rupees per 100 kg.

Production in 2010 is seen rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009, the poll of eight traders and exporters showed on April 19. At Unjha, the benchmark spot market in Gujarat, jeera gained 33 rupees at 12,559 rupees per 100 kg. Jeera exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER: Indian pepper futures were down as traders opted to book profit after prices rose nearly 3 percent in the last 2 sessions and on lacklustre overseas demand, analysts said. The most active June pepper contract was down 0.70 percent to 16,840 rupees per 100 kg.

Overseas demand for the Indian origin pepper is weak because prices are at premium compared with other competing countries in the international market, said analysts. Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said. Spot pepper gained 47 rupees to 16,494 rupees per 100 kg in Kochi, a major trading hub in Kerala.

The Economic Times