>OUTLOOK ON SPICES

Pepper futures may consolidate near their all time high price levels as exchange has imposed additional margin of 10% on both sides. The April futures contract may remain above 40,000 levels supported by the bullish fundamentals.The growers are holding back the stocks & squeezing supplies at a time when the output is expected to be lower. There are estimates that the domestic production may be around 43,000-45,000 tonnes, compared with 49,000 tonnes last year. Cardamom futures (Apr) is expected to maintain its consolidation with upside being capped owing to the special margin of 10% being levied on buy side & sluggish exporters demand at higher levels. Any large downside may remain arrested as harvesting for the current season crop is nearing its end. Moreover, arrival of the next crop will be in July, four months to go. Jeera futures (Apr) may trade in range bound carrying a weak bias. The counter may touch 13260 level in days to come as new crop arrivals of 15,000-20,000 bags of 60 kg have started which is reported to be good due to favourable weather conditions. Turmeric futures (Apr) is expected to show some bounce back owing to some lower level buying & exporters demand from Europe, US, West Asia and Japan. Chilli futures (Apr) may remain below 6300 levels on account of peak arrivals, which have started in M.P.


RISH TRADER