Spices Insights for November 16, 2016

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  • Red Chilli prices traded steady at the benchmark markets of India today amid sluggish demand. Arrivals were around 70000 bags from 60000 bags in the previous session.
  • New Red Chilli crop supply has yet not improved in the spot market as earlier it contains higher moisture, whereas now it was hurt by liquidity crunch.
  • Stockists are sidelined as they prefer to source new Red Chilli crop material with low moisture content to it for long term in cold storage. Further, current rates are not very attractive prompting them to wait and watch market condition.
  • Supply and quality of new crop is expected to improve only by month-end. Red Chilli crop is much better than last year due to favorable weather.
  • Jeera prices gained today at the major Indian markets as there is paucity of supplies while domestic buying may emerge.
  • Sowing of Jeera has started and traders are expecting higher acreage due to high prices in the domestic market coupled with increased export.
  • Cardamom prices improved today at the auctions held in Kerala and Tamil Nadu after recent correction.
  • Small Cardamom auctions were canceled for the second consecutive day in Idukki yesterday as the buyers found it difficult to raise cash for the purchase. As a result, Cardamom prices had dropped by 10% to around Rs 1200 per kg.
  • Cardamom prices had dropped at a time when the arrivals are in full swing. The daily arrivals range from 70 to 80 tonnes a day.
  • Cardamom production has estimated to be lower this year. The harvest season was delayed by a month. Growers feel it could be one-third of the output of about 30,000 tonnes last year. As a result, the prices had escalated to over Rs 1000 per kg after several years.
  • In the event of further cancellation of auctions, the Cardamom prices could drop again.
  • Black Pepper prices have been moving down despite there are no arrivals and trading activities are sluggish.
  • No demand was reportedly forthcoming from the upcountry markets that became inactive following the demonetisation of currencies. This phenomenon has affected the trade negatively.

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