Cumin drops on weak overseas demand; pepper steady

MUMBAI: Cumin futures were lower in the midday trade on Thursday on hopes of higher output and sluggish overseas demand, analysts said. "Trend looks weak as overseas demand is not supportive. Prices may slip further.

May contract may take support at 11,600 rupees," said an analyst from a local brokerage. Production in 2010 is seen rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009, the poll showed.

At 2:53 p.m., the most active May cumin contract was down 0.52 percent to 11,720 rupees per 100 kg. At Unjha, the spot benchmark market in Gujarat, cumin dropped 25 rupees to 11,950 rupees per 100 kg. The peak arrival season runs from March-April. Cumin exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER

Pepper futures were steady on limited supply in the market as farmers awaited higher prices, and on better local demand, but weakness in overseas enquiries restricted the upside, analysts said. "Local demand is good but overseas demand is sluggish because Indian parity is very high," said an analyst from Kotak Commodities Services Ltd.

At 2:53 p.m., the most active May pepper contract was up 0.15 percent to 15,436 rupees per 100 kg. Spot pepper was almost steady at 15,158 rupees per 100 kg in Kochi, a major trading hub in Kerala. Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said.

TURMERIC

Turmeric futures were slightly lower in the afternoon trade as traders choose to cash out gains after prices rose more than 9 percent in the last 11 sessions till Wednesday, but limited supply in spot restricted the downside, analysts said.

"Demand in spot market has come down as traders fear more fall in the prices. But in long term prices may rise as supply in the market is limited," said an analyst from a local brokerage.

At 2:56 p.m., the most active May turmeric was down 0.13 percent at 11,981 rupees per 100 kg. In Nizamabad, a major spot market in Andhra Pradesh, the price dropped 200 rupees to 12,212 rupees per 100 kg. Turmeric arrivals usually start in mid-January in small quantities and gain momentum from March. The peak season runs till June. Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board.