Commodity Futures Price Outlook

Commodity Market review

Spices complex on National Commodity and Derivatives Exchange ended dropped yesterday on

subdued demand. Widely traded pepper June closed at 16708 down by 216 rupees, Jeera June

contract slipped to 12,217 from 12292 rupees on Friday. Turmeric June finished 14,311 rupees

down by 3.37%.

Outlook

Pepper

Sluggish overseas demand coupled with weakness in spot market push down pepper price in

NCDEX future counters. Spot prices dropped by 100 rupees to 16200 rupees in Kochi; a major

trading hub in Kerala, and daily arrivals increased to 55Mt from 40Mt on Saturday. Overseas

demand for the Indian origin pepper is weak because prices are at premium compared with other

competing countries in the international market. Indian parity in the international market out

priced above $3,900 a tonne. Overseas traders were eyeing on US FDA decision on black pepper

import to America from Vietnam.

Jeera

Jeera futures softened on tepid overseas demand and estimates of higher output. Factors like

normal output in Syria, low overseas demand weighing on sentiment. Production in 2010 is seen

rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009. Spot rates in Unjha, a key

spot market in Gujarat, dropped 19.5 rupees to end at 12,552 rupees per 100 kg.

Turmeric

Turmeric futures on NCDEX registered a fall 3 percent in afternoon trade on Monday triggered by aggressive profit-taking by traders after prices were witnessed to grow more than 36 percent

since the beginning of April till Saturday. Production in 2010 is posted to rise to 2.9 million bags

of 60 kg each from 2.7 million bags in 2009. In Nizamabad, a major spot market in Andhra

Pradesh, the price is reported to have squeezed 25 rupees to 14,805 rupees per 100 kg

CHANA

Market Review

Chana futures ended flat on steady spot prices and lack of fresh triggers in the market. The June

NCDEX contract moved in narrow range of Rs2166-2187 and closed at Rs2179 levels. Spot prices

remained steady at Rs2125 per quintal. Market is also cautious ahead of expiry of May contract

and monsoon reports.

Outlook

Demand for chana is expected to improve with early onset of monsoon and better monsoon

forecasts for this year. Stockiest and farmers are not willing to sell at lower levels on anticipation

of some recovery during June – August. However, huge stocks of chana in the spot markets may

restrict major rise in prices in medium term. Spot prices are quoting steady at Rs2125 per quintal at Delhi. For the day ahead, chana futures are expected to remain in range bound on lack of major triggers.