Black Pepper Prices Advanced - Nov 06, 2009

Pepper higher prices led to lower physical demand in the domestic markets. Export demand too was dull with the ASTA grade black pepper quoting at US$3,325 PMT FOB Cochin, while Brazil ASTA grade black pepper quoted at US$3,000 PMT FOB.

The new domestic crop would hit markets by the end of December while the new crop from Vietnam would start by January.

These will ease supply concerns in the international markets. Garbled variety pepper quoted at Rs15,000 per quintal amid arrivals of 250 quintals and off-take of 100 quintals.

Turmeric Traded During The Range Of Lower - Nov 06, 2009

Turmeric high price hit turmeric with little or no trade being reported at the benchmark Nizamabad market. Turmeric traded in the range of Rs112-120 per kg, but settled lower at Rs112 per kg in late evening.

We expect demand destruction at international markets to continue in the coming days, given the life-high price for turmeric. Stock at the end of October is reported to be approximately 5/5.5 lakh bags, sufficient for 2 to 2.5 month consumption. The new crop is reported to be good shape with crop estimate ranging around 52-53 lakh bags.

Jeera Traded Is Steady - Nov 05, 2009

Jeera cumin traded steady at the benchmark Unjha market. Arrivals stood at 8,000 bags and about 10,000 bags were traded in the day. There was some export demand from Europe and USA while demand from gulf countries was subdued. 1% quality jeera traded in the range of Rs2,540-2,550 per 20kg while export quality jeera quoted around USD2,600.

Weather is supportive for jeera crop and traders expect acreage this year to be similar to that of the last year.

We can see firm export demand in the coming days, as export quality jeera is quoting competitive to jeera from Syria, which in turn will cushion jeera price in the domestic market.

Weather could play a price decider in days to come, as favourable weather would lead to higher crop this year, which in turn could push prices down.

Wheat Price Rallied During The Last Few Week - Nov 03, 2009

Wheat amid confirmation from the government regarding the offloading of 5 lakh tonne of wheat in the price range of Rs1,379-1,728 per quintal, spot markets of wheat have rallied in the last few weeks. The arrivals at the Delhi markets are around 8,000 bags while the price quoted for wheat is at Rs1,330 per quintal (excluding exp).

We believe that the price rise should take a halt, however, any delay in further releasing the stock could fuel up the price, as the stock with the private traders is minimal.

The sowing of wheat has begun in the northern areas and would augment in the coming days too. Wheat sowing is expected to rise, given the high market price supported by favourable soil moisture due to late rains in the northern region.