Agro Commodity Futures at NCDEX -Turmeric, Chana, Jeera, Oil & Oilseeds Rise.

Agro Commodity NCDEX Futures

Agro Commodity Futures at NCDEX rise.

Turmeric futures at NCDEX were higher as bargain buying was seen for the fifth straight trading session due to slow sowing progress of new crop in major producing states along with strong demand by stockists at lower levels. Turmeric acreage in Andhra Pradesh and Tamil Nadu is likely to fall over 20% on lower price realization for the Farmers. Turmeric futures at National Commodity and Derivatives Exchange (NCDEX) likely to remain positive for the year as the production of the commodity in the country is estimated to be lower as the farmers suffered huge losses due to surplus output earlier.

Demand for quality Indian Cardamom in the global as well as domestic market has surged on the back of lower crop production prospects inGuatemala and forecast of lower rainfall over major growing areas inIndia affecting the crop production.

The prices of Oilseeds and its derivatives at NCDEX (include Palm oil, Mustard seed oil, Cottonseed oil and Soybean / Soy Oil) in Indian markets are quoting higher as rainfall this monsoon so far over India has remained below average the falling rupee against the US dollar also caused the prices to jump higher as India imports more than 50% of the edible oil to meet the domestic demand. Dry weather in U.S has also raised the price of Oilseeds and its derivatives in the global exchanges like Chicago Board of Trade (CBOT).

Indian Jeera futures at NCDEX (Cumin seed) extended the gains for the third day on strong buying support lead by weak arrivals amid reports of fall in production in major producing nations. The total arrivals decreased to 7,000 bags from 10,000 bags, while demand was seen for around 15,000 bags. In international market, the major supplies are coming fromSyria andTurkey. Together they produced around 47000-49000 tonnes of Jeera . But in the current year due to erratic weather during the sowing period, the total production from these countries are likely to be restricted in the range of 33000 tonnes, down almost 30-35% from the last year.

NCDEX Chana futures expected to firm up further as the demand for chana is likely to increase during rainy season during lower availability of fresh vegetables amid lower arrivals in the market. Chana being a Rabbi crop, availability production concern also pushed the prices of the commodity in the NCDEX exchange.

The global Pepper market was relatively dull and price remained steady, as inventory at source except Vietnam is limited. Harvest in Vietnam has now been reportedly completed, but farmers are not interested to sell pepper at lower price. In India, exports have been dull because of uncompetitive price due to much lower production and rupee depreciation. A marginal decrease was recorded in Lampung during the week. In Brazil, the prices remained steady and maintained at the same level for the last one month. Between January and May 2012 total export from Brazil was 9,376 mt which is lower by around 20% than the last year’s corresponding period. Over the couple of weeks, industry demand has picked up and the steadiness in price is expected to continue. Although the availability of Pepper from Vietnam and upcoming harvest in Indonesia is marginally better, Pepper prices will remain firm steady since the demand is increasing.

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