MUMBAI: Turmeric futures rose on Monday on some export demand and concerns over lower output, though increasing spot supplies from the new crop and higher carry-forward stocks limited the upside.
At 1000 GMT, the most-active turmeric contract for April delivery on the National Commodity and Derivatives Exchange (NCDEX) was 1.06 percent higher at 6,688 rupees per 100 kg.
Traders expect a lower output because of a lesser area under plantation in leading cultivating states.
“Turmeric is expected to trade on a positive note on Monday on reports of fresh export enquiries,” Angel Commodities said in a research note.
Traders said demand for new crop was less than expected because of high moisture content but was expected to improve in the coming weeks.
Around 8,000-10,000 bags of 70 kg each are reaching Nizamabad, a key market in Andhra Pradesh.
Pepper futures rose as delayed harvesting due to lack of skilled labourers, thin supplies and negligible stocks triggered buying.
The most-active pepper contract for April delivery on the NCDEX was 1.37 per cent up at 34,700 rupees per 100 kg.
“Farmers are sitting on stocks because they are expecting better returns,” said a trader in Kochi, a key market in Kerala.
Pepper output is likely to be higher this season as a good yield is expected from the top-producing states of Kerala and Karnataka, traders said.
Supplies have picked up from Karnataka but are still below expectations because of labour shortage and as farmers are holding back stocks. Pepper rose 187.5 rupees to 36,687.5 rupees per 100 kg in Kochi.
Jeera futures edged down due to rising spot supplies and expectations of a higher output, though some export inquiries kept the downside limited.
The actively traded jeera contract for April delivery on the NCDEX was 0.11 percent lower at 13,185 rupees per 100 kg.
Daily supplies from the new season crop rose to 22,000-25,000 bags of 60 kg each from 10,000-14,000 bags during the start of the month, at the Unjha market in Gujarat.
“Increasing arrivals are weighing on sentiment but if export demand gains momentum then we may see some sharp gains in prices,” said Jay Kumar Jain, a trader in Unjha.
Jeera is a winter crop, sown from October to December, and fresh supplies start arriving in February.
Spot jeera fell 111.5 rupees to 13,387.5 rupees per 100 kg in Unjha.
Source: India Times