Turmeric retreats from contract highs; Cumin up

MUMBAI - Turmeric futures retreated from an early contract high on Thursday as profit booking emerged after a six-day rally, rising 17 percent, analysts said. Decent local demand and restricted arrivals however, limited the downside. "Prices may correct more on profit-booking.

However, overall sentiment is firm and prices may rise again from dip," said an analyst from a Mumbai based brokerage. At 2:49 p.m., the most active May turmeric was down 0.20 percent at 14,001 rupees per 100 kg after hitting a contract high of 14,360 rupees per 100 kg. In Nizamabad, a major spot market in Andhra Pradesh, the price gained 84 rupees to 14,522 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.

CUMIN: Cumin futures rose more than 1 percent on limited supply in spot market as farmers awaited higher prices, domestic demand and low stocks, analysts said. "Local enquiries are regular and may improve more as marriage season has come. Buying activities may gain momentum, which will support prices," said a spot trader from Unjha. At 2:53 p.m., the most active May cumin contract was up 1.11 percent to 12,535 rupees per 100 kg. At Unjha, the spot benchmark market in Gujarat, cumin gained 118 rupees to 12,320 rupees per 100 kg. The peak arrival season runs from March-April. 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. Cumin exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

PEPPER: Pepper futures were higher on bargain-buying, losing nearly 4 percent in the last 2 sessions and on limited supply as farmers hope for higher prices, analysts said. "It is technical buying. Lower levels are attracting traders. Overseas demand however, is still not picking up because Indian origin pepper is at premium in the international market," said an analyst from a local brokerage. At 2:53 p.m., the most active May pepper contract was up 0.11 percent to 15,785 rupees per 100 kg. Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said. Spot pepper fell 128 rupees to 15,722 rupees per 100 kg in Kochi, a major trading hub in Kerala.