Spices Market Watch by Nirmal Bang

spices-marketExcept Turmeric and pepper most of the spices were seen trading sideways to down. Huge difference between spot and futures triggered sharp upside in turmeric future, where as pepper also bucked the trend and move up on Saturday trading session.

Arrivals at The Kerala Cardamom Processing and Marketing Company Limited on Sunday at Thekkady Kg. 47245 and prices were down by Rs. 10/kg so prices may remain under pressure.

Pepper international markets at Vietnam continued to remain firm which is gave some support to bulls but domestic demand continues to remain sluggish due to "shardh" which may put cap on the upside. Long term bullish fundamentals are intact.

Jeera, continue to remain bearish as domestic demand continues to remain sluggish where as stockiest are reluctant to stock as revival in monsoon might encourage the sowing of Jeera and next year we might have bumper crop, exports at the same time have been sluggish.

Turmeric due to huge difference between spot and futures market prices moved up. Reports exporters and traders intending to take deliveries also kept bulls active. September contract is trading at premium by almost Rs. 350/quintal which indicates in near term bullish sentiments might remain intact.

Outlook for the day is sell on rise for Jeera, Chilli, mentha oil and Pepper and turmeric futures may move up by 1-2%.