NEW DELHI, AUG 1 Prices in the spices complex seen range bound in the coming week in the absence of fresh export contracts and recent rains in various producing centres, said traders and analysts.
India received 21% above normal rains during week ended Jul 29, according to India Met Department (IMD).
Export contracts continued to be negligible as buyers are waiting market to settle down, said traders.
Earlier traders were expecting that export demand will pick from gulf countries after the Ramzan, said an analyst.
India is a major producer and exporter of spices. India's spices export grew 9% to 893,920 tons during 2014-15 as against 817,250 tons a year earlier, according to data from Spices Board.
JEERA SEEN DOWN
Jeera prices may remain under pressure in the absence of export orders and comfortable stocks, said Subhrenil Dey, analyst with SMC Comtrade.
"Jeera harvest will start in Syria and Turkey, the two other major producers, in August and it may impact demand of Indian jeera," said Dey.
However, there are conflicting reports about the size of crop and the quality of jeera in the two countries, said a trader.
Meantime, heavy rains in some parts of Gujarat hit trading activity there, said traders.
Domestically, there is regular demand and market prices for lower quality jeera and revival of rains in western India may limit the trade operations and prospects of good sowing in next season, said a report from Angel Commodities.
Jeera September resumed week lower at Rs 15,815 against the precious closing of Rs 15,935 per quintal. The contract fell to Rs 14,940 on Wednesday due to emergence of profit booking and weak buying support.
However, towards week-end Sept contract recovered partially to Rs 15,475 per quintal on fresh buying.
As per third advance estimate of Gujarat government jeera production in 2014-15 is estimated at 158,000 ton down 54.3% on year, according to a report from Angel Commodities.
During 2013-14, the Gujarat jeera output was 346,000 ton, the report said.
India is the leading jeera producer while Syria and Turkey are the other major producers.
India's jeera export during 2014-15 rose to 155,500 ton from 121,500 ton a year ago, according to Spices Board.
In Delhi physical market, jeera Ganesh declined to Rs 15,000-15,100 per quintal from Rs 15,600-15,700 per quintal on increased arrivals amid weak demand.
CHILLI MAY RANGE BOUND
Prices of chilli are likely to move in a narrow range as traders are awaiting the report of sowing with the fresh spell of rains, said traders.
Sowing of chilli is in progress in Andhra Pradesh and Telangana two main producing states of the country.
"Initial reports are not promising but sowing may pick up in the coming days," said a trader.
There were reports of export demand from Bangladesh and Malaysia in Guntur market, the trader added.
Volume of business continued to be restricted on the National Commodity and Derivatives Exchange (NCDEX) due to lack of any positive report on export front.
On NCDEX, Chilli Teja Sept contract resumed trading lower at Rs 9,298 per quintal and on Tuesday it recovered to Rs 9,320 on renewed support.
Later, prices reacted to Rs 9,204 on selling pressure.
In the Delhi spot market chilli teja ruled unchanged at Rs 10,800-11,000 per quintal.
India exported 347,000 tons chilli in 2014-15 up 4% on year.
India's 2014-15 chilli output is projected lower due to adverse weather while exports are rising due to poor output in China.
Bangladesh, China, Srilanka, Malaysia, gulf countries are some of the major importers of Indian chilli.
CORIANDER- SELLING SEEN
"Coriander prices may decline in the coming as selling is expected the present higher levels," said Vijay Sharma, a local trader.
In producing centres of Rajasthan and Madhya Pradesh fresh rains were reported which may help sowing in the coming months, he said.
"Coriander may decline as no fresh export buying is coming while stockiest may unload their stocks," said Dey.
Last week, NCDEX has withdrawn the special margin on the commodity but it failed to push the prices up, said a trader.
On the NCDEX, coriander September contract opened lower by Rs 43 to Rs 12,105 but improved to Rs 12,115 on the same day.
However, on Thursday, the contract fell to Rs 11,300 on profit booking but later recovered to Rs 11,476 on Friday per quintal.
In Delhi spot market coriander medium quality steady at Rs 11,500-12,500 per quintal.
India's 2014-15 coriander exports spurted to 46,000 tons up from 24,650 tons a year ago.
TURMERIC MAY DECLINE
Turmeric prices are likely to remain easy as recent rains may brighten the crop prospects, said Dey.
Turmeric acreage is reported higher in Tamil Nadu and Maharashtra while sowing operations are going on in Andhra Pradesh and Telangana, said a trader.
Turmeric sowing in Andhra Pradesh stood at 49,000 hectare until Jul 22 as against 40,000 hectare a year ago.
In Telangana nearly 63% sowing of turmeric as been completed, said a report of Angel Commodities.
Turmeric acreage stood at 31,279 hectares in Telangana, the report said.
Maharashtra, Andhra Pradesh, Telangana, Tamilnadu and Odisha are the main producing centres.
On National Commodity and Derivatives Exchange (NCDEX), turmeric for September delivery opened marginally lower at Rs 6,972 per quintal and fell to Rs 6,750 on the same day on selling pressure.
Later prices jumped to Rs 7,292 to close the week at Rs 7,236 per quintal.
In the Delhi spot market turmeric single polish gattha improved by Rs 200 to Rs 7,600-7,700 per quintal on fresh demand from masala manufacturers.
India's 2014-15 turmeric export stood at 86,000 ton up from 77,500 ton a year ago.
CARDAMOM MAY UP
Cardamom prices are likely rule steady with higher possibilities of rising due to good export demand, said Sumit Bairathi.
New crop supplies have starting rising the producing centre, said a local trader.
"Exporters are main buyers in auctions to fulfill their export commitments. However, as soon as domestic buyers enter the market, prices will go up," hoped Bairathi.
Weekly arrivals at auction centres are estimated around 450 ton.
In the Delhi spot market cardamom Robin was traded at Rs 570-580 per kilogram.
(End)
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