MUMBAI : Turmeric extended losses for a third session on Tuesday on subdued demand in the spot market and rainfall in the main producing belt, which would accelerate delayed cultivation, analysts said.
“Rainfall has been putting pressure on prices. Rainfall has increased moisture level and cultivation has been progressing well in Maharashtra and Andhra Pradesh,” said Vandana Bharti, a senior analyst at SMC Comtrade.
Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu, the major producing states, have been receiving rains for last four days. Demand was sluggish from domestic and oversees buyers and that pulled down spot prices, said an analyst at Agriwatch.
In Nizamabad, a key spot market in Andhra Pradesh, the price fell Rs 10 to Rs 4,585 per 100 kg. A likely drop in acreage in 2008-09 due to scanty rains in main cultivating regions during the vital cultivation period capped the downside, said an analyst at Delhi-based commodity brokerage.
The main producing states received lower rains from June 1 to July 23 compared to the long-term average, weather department data showed. Recent showers were also helping the planted crops, said a trader based in Nizamabad.
Traders estimate reduced acreage and unseasonal rains in March to cut output in 2007-08 to 4.2 mn bags of 70 kg each from 5.4 mn bags a year ago. Meanwhile, chilli for August delivery trimmed early gains to end lower on
Tuesday tailing a weak spot market where exporters slowed down buying due to rainfall, analysts said.
Recent showers over Andhra Pradesh, the biggest producer, erased fears of lower output due to scanty rains during mid-June to mid-July, said an analyst at a Mumbai-based commodity brokerage. In Guntur, a key spot market in Andhra Pradesh, price was down Rs 41 at Rs 5,111 per 100 kg.
Exporters were buying slowly due to rainfall, which makes handling of the spice difficult, traders said. However, an expected rise in export demand pushed up October futures contract. Chilli exports in the first three months of FY09 rose 16.3% to 67,000 tonnes, the Spices Board said on Friday.
“Rainfall has been putting pressure on prices. Rainfall has increased moisture level and cultivation has been progressing well in Maharashtra and Andhra Pradesh,” said Vandana Bharti, a senior analyst at SMC Comtrade.
Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu, the major producing states, have been receiving rains for last four days. Demand was sluggish from domestic and oversees buyers and that pulled down spot prices, said an analyst at Agriwatch.
In Nizamabad, a key spot market in Andhra Pradesh, the price fell Rs 10 to Rs 4,585 per 100 kg. A likely drop in acreage in 2008-09 due to scanty rains in main cultivating regions during the vital cultivation period capped the downside, said an analyst at Delhi-based commodity brokerage.
The main producing states received lower rains from June 1 to July 23 compared to the long-term average, weather department data showed. Recent showers were also helping the planted crops, said a trader based in Nizamabad.
Traders estimate reduced acreage and unseasonal rains in March to cut output in 2007-08 to 4.2 mn bags of 70 kg each from 5.4 mn bags a year ago. Meanwhile, chilli for August delivery trimmed early gains to end lower on
Tuesday tailing a weak spot market where exporters slowed down buying due to rainfall, analysts said.
Recent showers over Andhra Pradesh, the biggest producer, erased fears of lower output due to scanty rains during mid-June to mid-July, said an analyst at a Mumbai-based commodity brokerage. In Guntur, a key spot market in Andhra Pradesh, price was down Rs 41 at Rs 5,111 per 100 kg.
Exporters were buying slowly due to rainfall, which makes handling of the spice difficult, traders said. However, an expected rise in export demand pushed up October futures contract. Chilli exports in the first three months of FY09 rose 16.3% to 67,000 tonnes, the Spices Board said on Friday.
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