Spices outlook

Chilli:Chili prices are looking sideways trend in the next couple of days owing to steady arrivals in spot market. In Guntur market, the NCDEX quality chili is quoting lower by Rs 50-80 quintal at Rs 3,900-3950 per quintal. Higher production combined with higher arrivals of good quality crop in the coming days has sidelined the buyers at higher price level. However, a sharp fall is not expected owing to good export opportunity, as presently, India is the major source of red chili in the international market.

Turmeric:Turmeric prices are moving range bound owing technical correction. Daily inflows of turmeric in the physical market at Nizamabad mandi are around 15,000 bags (1 bags=70 kg) as against 7,000 bags during last week. The arrivals are expected to increase to 25,000 bags in coming days. During last two days spot market prices in Nizamabad has fallen by Rs100 per quintal. Stockists are keeping themselves sideline at higher price level.Turmeric output during the current season is expected to decline to around 7.5 lakh tonne, against 8.9 lakh tonne last year. Further, buying support by AP Markfed at Rs3,000 per quintal from local market is likely to support the market.

Jeera:Jeera is likely to trade rangebound with weak undertone on increasing arrivals of fresh crop in the market yards against the backdrop of higher production outlook. Higher yield and good acreage in Gujarat would make jeera price down.

Pepper:Pepper prices are higher as compared to spot prices that mainly motivated investors to sell futures and buy spot exchange delivered pepper. Indian parity has remained around $4,000-4,050 a tonne (c&f), Vietnam is quoting at 500GL $3,820 fob as against the earlier at $3,970, V 550 GL $4,020-4,050 a tonne as compared to earlier quotation of $4,100 a tonne (fob). V Asta was quoted at $4,456 a tonne (fob). Brazil B2 is being offered at $3,700 a tonne (fob) while B1 variety is at $3,800 a tonne and B Asta is at $3,850 a tonne (fob). Around 30-40 per cent of the total crop is already harvested in Vietnam.

Thanks Kaushal for the post. Keep on posting information related to Agri commodities as we have very few threads on commodities. I will try to add technical outlook where ever required.