Turmeric Futures Rise As Cultivation Gets Delayed - July 5, 2008

MUMBAI: Turmeric futures ex MUMBAI: Turmeric futures ex MUMBAI: Turmeric futures ex tended gains to hit a new contract high on Friday, tracking a firm spot market and on slower pace of cultivation in the main producing states due to lower rainfall, analysts said. “Sowing operations are lagging behind compared to last year and they are providing opportunity to traders to speculate about the next year’s output,” said Abhay Lakhwan, an analyst at Religare Commodities. Andhra Pradesh, the biggest producer, received very low rainfall in mid-June, which delayed cultivation by a fortnight. Earlier this week, the state received rainfall in some parts, but traders said it was not sufficient for cultivation. Cultivation was also delayed in some parts of Maharashtra. Turmeric cultivation starts with the arrival of monsoon rains in June in southern and western states, the major producers. In Nizamabad, a key spot market in Andhra Pradesh, price rose Rs 28 to Rs 4,208 per 100 kg. The benchmark August contract on NCDEX hit new high of Rs 4,555 per 100 kg in afternoon trade. , but had given up part of the gains by the evening, when profit-taking emerged.