India spices open up, turmeric hits new highs

Written by Reuters | Mumbai | Updated: Jul 31 2009, 16:10pm hrs
Indian jeera futures opened up on Friday on support from a firm spot, analysts said. At 10.35 a.m., benchmark August jeera was up 0.89 percent at 11,850 rupees per 100 kg.

Demand in the spot market is firm due to the upcoming festival season, analysts said.

However, a good overseas crop, which continues to hurt Indian exports, is likely to trim gains, they added.

PEPPER:

India pepper futures opened firm on hopes selling pressure from Vietnam would ease and on strong domestic demand, analysts said.

At 10.36 a.m., the benchmark August pepper was up 1.12 percent at 13,230 rupees per 100 kg.

However, Indian export rates are still at a premium to competing countries, and this is expected to keep a lid on gains, analysts said.

TURMERIC:

India turmeric futures extended the previous session's gains to hit contract highs tracking a firm spot market, but profit-taking driven by slowing exports weighed on prices, analysts said.

The spot prices jumped on Thursday on good domestic demand amid depleting stocks.

At the end of June, trade estimates put stocks in the country at 1.35 million bags, while demand for June to February period is pegged at 2.2 million bags.

Turmeric prices are likely to jump by a quarter in second half of 2009 on thin stocks, festive demand and poor rains washing out chances of a rich harvest, traders said. See

At 10:37 a.m., the most traded August contract was up 0.3 per cent at 6,275 rupees per 100 kg, after hitting a high of 6,320.

India's turmeric exports in the first three months of fiscal 2009/10 eased by 2 per cent to 15,500 tonnes.