Spices Daily Bulletin for 16-Dec- 2011

8/3/2019 Spices Daily Bulletin for 16-Dec- 2011

1/14

`

MARKET ANALYSIS

Jeera prices ruled steady to firm in Delhi and Unjha market on Thursday. However, export inquiry may emerge in Ind

Jeera due to political unrest in Syria. Unjha traded higher up to Rs 50-60 due to good demand in the market. Witness

volatility amid negative reports from the export front coupled with indications of higher acreage this year.

Spices traded sideways in the spot markets. The supplies have been limited in the market but average demand inmarket has been pressurizing the prices. In most of the markets trading activities remained subdued steady resultin

limited movement. Thus price are likely to trade steady with range bound movement in near term.

SPICES

DATE: 16-12-2011

JEERA

Technical Analysis & Price Outlook

Bearish sentiments prevailed in the Jeera

markets and prices opened weak and traded

mostly in negative.

Prices have remained in the downtrend and 9

days EMA shall act as stiff resistance on any

recovery in prices.

14 days RSI is declining in the neutral region

while stochastics (9, 3, 3) has been increasing in

the neutral region hinting range bound

movement.

Prices are expected to face stiff resistance on anyimprovement at 13985 and 14250; while prices

shall gain support on decline around 13575.

Considering the above factors high volatility is

expected in the market.

NCDEX: (Jeera), Contract: Dec

TRADE RECOMMENDATION (Dec FUTURES)

Strategy Entry Objective Stop Loss

Wait - - -

Previous Closing (INR/Qtl):INR 13757(-185)

IMPORTANT SUPPORT AND RESISTANCES1 S2 PCP R1 R

13250 13575 13757 13985 142


2/14

` Traders have incited strong selling at higher levels due to strong sowing prospects of jeera crop in the coming seas

Traders mentioned that steady prices of jeera throughout the year along with adequate rainfall in the major sowing are

of jeera crop such as Gujarat and Rajasthan might witness strong jeera production in the next year. The latest mar

data also reported that Gujarat has covered almost 10 lakh hectares of sowing area so far in the current year. Moreov

waning export demand might also assert some selling at higher levels.

This year, production estimated to be 3.5-3.8 million bags (1 bag = 55 kg) as compared to 2.5 million bags last ye

Overall sowing area has jumped 56 per cent to 113,100 hectares so far this year, as compared to 49,764 ha last year.

Sowing of jeera begins in early October and continues until the first week of December for harvesting in February-Ma

Gujarat is the largest producer, consisting of 70 per cent of overall output. Rajasthan and Andhra Pradesh are other la

producers of this spice.

Last year, the crop was destroyed in Indias two biggest export competitors, Syria and Turkey, causing substan

increase in offtake from foreign buyers. This year, in contrast, exports have not been good so far. The shipmen

expected to pick up once the fresh crop hits the market in February.

Jeera In the international market, Syrian and Turkeys cumin seed is being offered at USD 3,300 per ton respectiv

while; Indian cumin seed is quoted at USD 2,900 per ton.

Market Perception:

With jeera exports in the first seven months of the current year up marginally by 4 percent, jeera in the next couple

days may rule steady amid scattered buying though prices thereafter may ease on profit booking, opined mar

analysts.

Upon considering the above factors prices are likely to trade sideways in near term.

Stock Position of Jeera at NCDEX Accredited warehouses as on 14 Dec 2011.

commodity Location Metric Tonnes(MT)

Dematted Stock NCDEX Quantity In Process

Jeera 14-12-2011 13-12-2011 Change 14-12-2011 13-12-2011 Change

Jodhpur 645 666 -21 0 0 -Unjha 8320 8347 -27 125 134 -9

Total 8965 9013 -48 125 134 -9


3/14

`

MARKET ANALYSIS

Black Pepper prices gained sharply further on the back of strong demand against the short arrivals of the spice. Win

season buying from north India and some export enquires supported the back pepper to trade higher. Indian pep

output during the new crop season (2011-12) is estimated to be around 43,000 tonne, which is lower by around 5,0

tonne than the previous crop.

According to traders, the foreign buying has slowed down due to bearish trend in the international market. A

domestic demand is not encouraging. Karnataka traders are selling pepper at Rs. 34500-35800 for entire India delive

However, there are good demand reported for high density black pepper in Idukki and price is quoted at Rs. 35,000

quintal, but the availability is limited.

BLACK PEPPER


NCDEX Pepper Dec contract further increased

during early trade and reached 36200, however

decline and ended at 36100 up 225 points against

previous close.

Prices are expected to trade volatile and thus one

must be very cautious, prices have remained in

uptrend and reversal is likely only if prices go above

36350.

Prices have ended above 9 days EMA, howeverincreased above the same shall hint for

continuance of the uptrend.

14 days RSI has increased in the neutral region

while stochastics (9, 3, 3) had bullish cross over

hinting for firm trade.

Prices are expected to trade sideways.

NCDEX: (Black Pepper), Contract: Dec

TRADE RECOMMENDATION (Dec Futures)

Strategy Entry ObjectiveStopLoss

Wait - - -

Previous Closing (INR/Qtl): INR 37100(+225)

IMPORTANT SUPPORT AND RESISTANCES1 S2 PCP R1 R2

36575 36850 37100 37275 3755


4/14

` Black pepper prices continued to fall with the exception of local prices in Brazil, an International Pepper Commun

This decline is after the pepper prices achieving a peak in October. Pepper crop in India will start in December-Janua

Market situation in India influences on price developments in other producing countries.

The estimates suggest production in India would be lower at 42,000 tonnes, as against 48,000 tonnes in 20

Production in Brazil and Malaysia is expected to be steady at 30,000 and 20,000 tonnes, respectively, while that fr

Indonesia is pegged higher at 15,000 tonnes. Production in Indonesia was 10,000 tonnes last year, affecting glo

supply. Meanwhile, low supply has led to a sharp rise in prices in global markets. Meanwhile, price of the commo

from all the other origins including Brazil is ruling above the Indian parity.

In the international market, Indian black pepper MG 1 quoted at USD 7,000 metric tons for Europe and USD 7,300

metric ton for New York. Brazil B Asta offered at USD 6,900 per ton, B1 at USD 6,800 and B2 at USD 6,700 per t

Vietnam FAQ 500 GL is offered at USD 6,800 per ton and 550 GL is at USD 7,100 per metric ton.

Market Perception:

In view of the firm noticed in the futures market black pepper in the next couple of days may trade in the positive zoPrices are expected to rule firm in the next 8-10 days as well.

Considering the above factors prices are likely to remain mix in near term.

Stock Position of Pepper at NCDEX Accredited warehouses as on 14 Dec 2011.commodity Location Metric Tonnes(MT)


Black Pepper 14-12-2011 13-12-2011 Change 14-12-2011 13-12-2011 change

Calicut 80 80 00 0 0 -Kochi 4265 4236 +29 188 30 +158

Total 4345 4316 +29 188 30 +158


5/14

`

MARKET ANALYSIS

The spot turmeric prices in Erode and Nizamabad markets declined due to panic sales by farmers and total lackdemand due to liquidity crunch. Prices dropped by Rs. 100-350 per quintal. Lack of demand from North India in view

winter setting in and heavy arrivals continued to take toll on spot turmeric prices on Thursday. Exporters are v

cautious in quoting and purchasing required quantity.

Turmeric exporters have received some orders from north Indian towns. Merchants in North India, after watching

turmeric markets at Erode, Nizamabad and Sangli, placed orders at the prevailing price. Though current prices are

feasible, farmers are selling as they require money.

The total production of turmeric in the current year is likely at 90 lakh bags against 70 lakh bags that were reported

year in the same period. Moreover, sturdy carryover stocks in major mandis of around 20-22 lakh bags are a

TURMERIC


Turmeric prices traded choppy during the day prior

to ending marginally weak and shows indecision in

the market, indicated by the formation of spinning

top.

Prices have remained below the EMA and hints for

further decline.

14 days RSI has been declining in the neutral region

along with stochastics (9, 3, 3), hinting for sideways

trade.

Prices may face stiff resistance around the levels of

INR 4685 and 4910 and on the lower side prices

shall gain support towards INR 4250 on any decline.

Taking into consideration the above factors prices

are expected to trade with weak bias.

NCDEX: (Turmeric), Contract: Dec

TRADE RECOMMENDATION (Dec Futures)Strategy Entry Objective Stop Loss

Wait - - -

Previous Closing (INR/Qtl): INR 4426(-184)


4110 4250 4426 4685 4910


6/14

`witness some selling pressure at higher levels. Therefore, strong supplies in physical market might witness stro

selling in turmeric market at higher levels.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for

commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January. Expo

that had remained low are however expected to raise in coming weeks from Europe, US, West Asia and Japan.

Most traders were disappointed as no new order was received from North Indian merchants, so they quoted low

prices at the spot market in Erode. The traders purchased 40-45 per cent of the turmeric arrivals to fulfill their pend

orders. Some traders purchased few bags to stock them to compensate their previous loss.

Farmers continue to retain huge stocks of more than eight lakh bags. Some farmers believe the current rainy spell

hit the turmeric crop in a few areas, affecting yields next year, thereby leading to increase in prices. That was o

reason why some farmers have stocked up. Only a negligible quantity of turmeric crop had been submerged beca

of the rains, so yields will not fall.

Exports failed to pick up and better crop prospects kept selling pressure on the markets intact. There are possibilitie

further weakening of prices in the short term till demand rises. Exports that had remained low are however expected

raise in coming weeks from Europe, US, West Asia and Japan.

Market Perception:

Seeing the futures cues turmeric is likely to remain steady in the next couple of days. However, prices may ea

marginally in the next 8-10 days on stockists selling on the back of profit taking.

Thus considering the above factors prices are likely to trade steady in Spot Market.

Stock Position of Turmeric at NCDEX Accredited warehouses as on 14 Dec 2011.commodity Location Metric Tonnes(MT)


Turmeric 14-12-2011 13-12-2011 Change 14-12-2011 13-12-2011 Change

Turmeric Duggirala 15 15 00 0 0 -Turmeric Nizamabad 5 5 00 0 0 -Turmeric Erode 301 301 00

60 60 00Turmeric Salem 2308 2308 00Turmeric DESICUDDAPAH 629 629 00

110 131 -21Turmeric RAJAPORE 249 249 00Turmeric Warangal 840 840 00 0 0 -

Total 4347 4347 00 170 191 -21


7/14

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MARKET ANALYSIS

Red chilli Prices in Delhi on Thursday held steady over the previous day level on scattered support from local aupcountry stockists. Red chilli gained Rs 200-300 per quintal at the Guntur market Thursday on demand fr

Bangladesh and lower arrivals.

The other reason for the bearish outlook is that exports have slowed. Exports to Malaysia, Nepal, Pakistan and

Lanka continue but at a slower pace. Chilli exports have dropped 39 per cent between April and August this ye

According to traders, the unavailability of water and scarcity of rainfall may adversely affect the crop. The climate is

in chilli areas along with power cut, which has affected irrigation. The farmers are not bringing their stock to sell in

market due to poor situation for the new crop.

RED CHILLI

NCDEX: (Red Chilli), Contract: Dec

TRADE RECOMMENDATION (Dec Futures)

Strategy Entry ObjectiveStopLoss

Wait - - -

Previous Closing (INR/Qtl):INR 6652(+228)


6250 6460 6652 6775 6950


Futures ended firm, prices opened higher however

declined during the day prior to finishing higher.

The formation of high frequency candle above the 9

days EMA is hinting for trade with firm bias.

Prices have ended around the levels of 9 days EMA

and are likely to face stiff resistance around the

levels of 18 days EMA.

14 days RSI and stochastics (9, 3, 3) had been

increasing in the neutral region and hinting for

recovery in the prices.

Buying support at lower levels may push the prices

higher.

Prices are expected to trade with firm bias.


8/14

` Traders eye red chilli teja demand from Europe that is to hit the markets soon. Also, China is likely to spurt up enqui

in the Indian market. However, first level buying has been done by Pakistan.

There are anticipations that output in Nimaad region of Madhya Pradesh is likely to reach up to 60 lakh bags (35

per bag) against 45 lakh bags of last year.

Heavy rainfall in major Chilli producing areas of Madhya Pradesh might keep the Chilli prices supportive at lower lev

As per market sources, strong rainfall in major producing areas of Chilli in Madhya Pradesh might delay the Chilli c

by more than one month. Sources mentioned that the fresh arrivals of Chilli are normally starts in the month

November to Mid- December. Last year, the total production of Chilli was down 33% to 1.20 lakh bags due to err

monsoon in the state along with weak sowing acreage of Chilli crop.

Overall exports stood at 195,500 tonnes, compared to 255,100 tonnes in the same period last year. In terms of val

spices exports surged 26 per cent to Rs 3,365.20 crore. In dollar terms, exports rose 29 per cent to $751 mil

compared to $581 million last year. Chilli exports dipped 39 per cent to 68,000 tonnes in the last five months, bu

value they lost three per cent.

Chilli exports have seen a drastic fall this year. Last year, major export demand for the spice came in from China. C

demand from China declined drastically. Chilli is one of the major spices in the export basket. With exporters being out of the market, we expect prices to trade weak in the coming sessions. Price outlook for the

is negative.

Market Perception:

With the reports of commencement of scattered arrivals of new red chilli in Guntur market centre, red chilli pala is lik

to remain steady in the next couple of days. However, prices are likely to drift lower in the next 8-10 days on p

booking by stockists, opined market analysts.

Contemplating the above factors price are likely to remain sideways with marginal weakness.

Stock Position of Red Chilli at NCDEX Accredited warehouses as on 14 Dec 2011.

commodity Location Metric Tonnes(MT)


Red Chilli 14-12-2011 13-12-2011 Change 14-12-2011 13-12-2011 Change

Guntur 823 823 00 10 10 00Warangal - - - - - -

Total 823 823 00 10 10 00


9/14

`

MARKET ANALYSIS

Large Cardamom quoted lower in Delhi on restricted buying by stockists buying even as auction was not held for the

consecutive day amid prevailing tension in Tamil Nadu and Kerala over the Mullaperiyar dam issue. However, declinsupply and buying support especially from exporters at the auctions held last week in Kerala and Tamil Nadu.

However, dispute between both Kerala and Tamil Nadu affecting road traffic across the border has affected

movement of cardamom to the auction centres located at the border towns in both the States. However, good exp

buying coupled with purchases by upcountry dealers has helped the market to gain marginally.

Weather conditions in the growing areas continued to remain favourable so far and harvesting is on a full swing

Another factor aiding the overseas demand, holding the Indian prices at this level, is the quality loss of Guatem

cardamom capsules, the only main competitor to Indian produce in the world market, due to heavy rains. Hig

CARDAMOM

MCX: (Cardamom), Contract: Dec

TRADE RECOMMENDATION (Dec Futures)Strategy Entry Objective Stop Loss

Wait - - -

Previous Closing (INR/Qtl): INR 545(-2.61)


535.80 540.50 545 560.50 575.


Cardamom prices remained open down compared

to the previous trading session, however prices

plummeted prior to recovering and ending at 545.

14 days RSI is declining in the neutral region while

stochastics (9, 3, 3) has entered the increasing in

the neutral region.

The 9and 18 days EMA may act as strong

resistance on any increase in the prices.

One must be very cautious as short covering has

been resulting in the prices and there is no active

buying in the market.

Considering the above factors high volatility is

expected in the market.


10/14

`favourable weather conditions along with good rains in the growing areas in recent days have created a bear

sentiment among buyers.

The market outlook is still weak as heavy arrivals pound the market. In one auction we had 107 tonne, which is hig

than the normal. Prices will be under pressure as buyers keep away hoping that it will decline more.

Exports from India had declined due to the premium on Indian cardamom compared to the Guatemala commodity. Ind

lost traditional markets like Kuwait, Japan and Oman to Guatemala while retaining Saudi Arabia.

Market Perception:

Cardamom small exports in the first seven months of the current financial year have surged 389 percent to 2300 ton

and this may fuel fresh buying, strengthening cardamom small in the next couple of days. Prices are likely to remain f

in the next 8-10 days as well as supplies remain weak.

Considering the above factors prices are expected to trade mix for the next couple of sessions.

MARKET ANALYSIS

Coriander prices quoted stable in spot market.Coriander seed (dhania) average quality in Delhi held steady over previous day level on scattered offtake by local and upcountry stockists, while dhania Dec futures held firm

speculative support.

India is the biggest producer, consumer and exporter of coriander in the world with an annual production averaging o

300,000 tonnes. Production fluctuates widely between years and has varied from under 200,000 tonnes to ab

400,000 tonnes over the past one decade. Indian production figure for financial year 2010-11 is estimated to be aro

280,000-300,000 lakh tonnes. Rajasthan (54%) and Madhya Pradesh (17%) are the two largest producing states in

country contributing over two-thirds to the countrys total production of coriander.

The other producers are Gujarat (6.9%), Assam (6.6%), Andhra Pradesh (3.5%), Karnataka (3.3%), Orissa (3.2%) a

Tamil Nadu (2%). Spices Board Indias official estimates of area under coriander cultivation and production, peg Ind

total area under cultivation at close to 400,000 hectares. Coriander for seed cultivation is grown as a rabi crop w

sowing beginning during OctoberNovember. February-March is the season for new crop arrivals.

Globally, the major producers are India, Morocco, Canada, Romania, Russia and Ukraine. The other producers are Ir

Turkey, Israel, Egypt, China, the US, Argentina and Mexico. The global trade in coriander is estimated to be ne

100,000 tonnes a year.

While, India, Turkey, Egypt, Romania, Morocco, Iran and China are the major exporters, West Asia, Southeast Asia,

US, the UK and Germany are major importers.

CORIANDER


11/14


12/14

`Delhi Erode Moti Phalli 8700 8700 00 - - -

RED CHILLI GUNTUR/Qtl

Market Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeGuntur Teza Red 7350 7250 +100

35,000 37,000 -2000Guntur Indo-5 7000 6650 +350Guntur 273 Variety 7400 7000 +400Guntur Sanam 6850 6850 00Guntur 334 variety 7000 6650 +350

Market Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeWarangal Fatki 3000 3000 00

- - -Warangal Teza 6900 6900 00Warangal 341 Variety 6700 6700 00Warangal Davloor Deluxe 6650 6650 00

Warangal 334 Variety 6900 6900 00RED CHILLI DELHI/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi Pala 6250 6250 00 - - -

Delhi Fatki 4800 4800 00 - - -

Delhi Packing 8250 8250 00 - - -Delhi Full cut 8250 8250 00 - - -

JEERA UNJHA/20kgMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeUnjha Ganesh Common 2660 2610 +50

- - -Unjha Gulab Common 2667 2620 +47

Unjha Gulab Machine Cut Bold - - -

Delhi Market Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi General 13550 13450 +100 - - -Delhi Machine clean 14500 14400 +100 - - -Delhi Best machine clean 16650 16550 +100 - - -

BLACK PEPPER KOCHI/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 Chang

eKochi Ungarbled 34200 34000 +200

26 tonnes21tonnes

+5Kochi MG-1 35700 35500 +200

BLACK PEPPER DELHI/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi General 337.5 336.5 +1 - - -Delhi ATM -11.5 397.5 397.5 00 - - -Delhi ATM No-12 430 430 00 - - -

SMALL CARDAMOM DELHI/KgMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi/kg Chtridar 485 485 00 - - -Delhi/kg Colour robin 515 515 00 - - -


13/14

`Delhi/kg bold 530 530 00 - - -Delhi/kg Extra bold 665 665 00 - - -Delhi/kg 8MM 765 765 00 - - -

LARGE CARDAMOM DELHI/Kg

Market Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi Jhundiwali 705 727 -22 - - -Delhi Katchikat 955 962 -7 - - -

CORIANDER RAMGANJ/Qtl Arrivals in bagsMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeRamgunj Bandami Eagle 3300 3300 00

- - -Ramgunj Bandami Green 4300 4300 00Ramgunj Scooter - -Ramgunj Single parrot - -

Ramgunj Double parrot - -

CORIANDER KOTA/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeKota Bandami 4125 4125 00

1500 1000 +500Kota Eagle 4250 4250 00Kota Scooter 4500 4500 00Kota Single parrot - - -Kota Double parrot - - -

CORIANDER BARAN/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeBaran Bandami 3425 3425 00 - - -

Baran Eagle 3525 3525 00

CORIANDER GUNA/Qtl NEW ARRIVALMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeGuna Bandami 3400 3400 00

300 150+150

Guna Eagle 3500 3500 00

Guna Scooter 3800 3800 00

CORIANDER NEEMUCH/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeNeemuch Bandami - - - - - -Neemuch Eagle - - -

Neemuch Scooter - - -

CORIANDER KUMBHRAJ/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeKumbhraj Bandami - - -

- - -Kumbhraj Eagle - - -Kumbhraj Scooter - - -

POSTADANA/KgMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 Change


14/14

`Turkey - 165 165 00 - - -MP - 165 165 00 - - -Rajasthan - 215 215 00 - - -

Kashmiri - 150 150 00 - - -

BLACK SEED DELHI/QtlMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi - 9500 9500 00 - - -

OTHER MINOR SPICESMarket Variety/Grade 15-12-11 14-12-11 Change 15-12-11 14-12-11 ChangeDelhi/kg Clove 762 787 -25 - - -Delhi/kg Cinnamon(Dalchini) 99 99 00 - - -Kochin/kg Nutmeg (Jaifal) 770 780 -10 - - -Kochin/kg Mace(Javitri) Red 1600 1600 00 - - -

Kochin/kg Mace(Javitri) Yellow 1865 1865 00 - - -

Irani/gram Saffron(Kesar) 95 95 00 - - -Kashmiri/gram Saffron(Kesar) 131 131 00 - - -Baby/gram Saffron(Kesar) 145 145 00 - - -

Delhi/QtlFenugreekseeds(Methidana)General

2750 2750 00 - - -

Delhi/Qtl

Fenugreekseeds(Methidana) Best

4100 4100 00- - -

Disclaimer

The information and opinions contained in the document have been compiled from sources believed to be reliable. The companydoes not warrant its accuracy, completeness and correctness. Use of data and information contained in this report is at your ownrisk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodities. This documentmay not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose without priorpermission from the Company.

2009 NNS Online Pvt Ltd.

Documents

Spices Daily Bulletin for 16-Dec- 2011