Turmeric drops on profit-booking; jeera, pepper up

MUMBAI: India's turmeric futures wiped out early gains by midday on Monday on profit-booking after gaining more than 15 percent in the last 5 sessions and on rising arrivals in the physical market, analysts said. "Arrivals are gaining pace in spot market but demand is good and is likely to support prices," said Sudha R. Acharya, analyst at Kotak Commodities Services.

At 1:59 p.m., the benchmark April turmeric was down 0.56 percent at 11,500 rupees per 100 kg. In Nizamabad, a major spot market in Andhra Pradesh, the price gained 544 rupees to 11,920 rupees. Turmeric arrivals usually start in mid-January in small quantities and gain momentum from March. The peak season runs till June.

Turmeric exports in January 2010 stood at 3,250 tonnes, down 22.61 percent from a year ago, according to data from the Spices Board.

JEERA: India's jeera futures were higher on improved seasonal demand and a decline in arrivals, analysts said.

"Domestic demand is supporting prices. However, overseas demand is still weak. The April contract may test resistance at 12,420 rupees per 100 kg," said an analyst from Kotak Commodities Services Ltd. At 1:56 p.m., the benchmark April jeera contract was up 0.87 percent at 12,150 rupees per 100 kg. At Unjha, the benchmark market, the price traded almost steady at 11,936 rupees per 100 kg. Jeera exports in January 2010 dropped by 47 percent to 2,000 tonnes on year, the Spices Board said.

PEPPER: India pepper futures were higher on robust domestic demand amid limited supply in the market as farmers held on to their produce for better prices, analysts said. "Trend is positive in pepper. April contract may jump to 15,028 levels in short-term," said an analyst from Kotak Commodities Services.

At 1:54 p.m., the benchmark April pepper contract was up 0.81 percent at 14,620 rupees per 100 kg. Spot pepper gained 468 rupees to 14,451 rupees per 100 kg in Kochi, a major trading hub in Kerala. Indian pepper exports in January stood at 1,500 tonnes, down 28.57 percent on year, the Spices Board said.