Indian turmeric futures fall on profit taking

19 Aug, 2012

Turmeric futures fell on Friday on profit taking after prices rose 4 percent in the previous session, though a decline in sowing area and overseas sales were seen supporting prices at lower levels. Farmers slashed area under turmeric sowing this season after a sharp fall in prices since last year. At 1001 GMT, the September turmeric contract on the National Commodity and Derivatives Exchange (NCDEX) was down 1.26 percent at 5,974 rupees per 100 kg.
"Profit-booking is seen in turmeric futures but overall trend continues to be bullish on strong fundamentals," said an analyst at Kotak Commodities. India's monsoon rains were slightly below average in the past week, but heavy downpours arrived in a parched western state, the weather office said on Thursday.
Turmeric is planted between June and August and takes about nine months to harvest. Jeera, or cumin seed, futures fell as rains in the top producing state of Gujarat weighed on sentiment, but improved demand in the spot market due to the festive season and fresh export enquiries restricted the downside. "Rains have improved in the last few days. Soil moisture is expected to improve from these rains and would help jeera sowing in October," said Jayesh Patel, a trader from Unjha, a key market in Gujarat. Jeera is a winter crop sown from October, and farmers depend on rains to moisten the land for sowing. The September jeera contract on the NCDEX was down 0.15 percent at 16,300 rupees per 100 kg.
At Unjha, jeera rose 124 rupees to 16,364 rupees per 100 kg. Pepper futures were down as subdued cues from spot and sluggish exports due to higher prices for Indian produce weighed. The most-active September contract on the NCDEX fell 0.21 percent to 42,210 rupees per 100 kg.

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