Spices complex on NCDEX ended mixed with Jeers futures hit 2% upper circuit on rise in spot market. Turmeric futures ended firm tracking stable domestic demand and closed at Rs.13946. October pepper rose to an intraday high of Rs.19670 and closed with a net change of 0.43%. Fundamental factors Pepper Huge difference made the export demand of pepper to remain weak. Meanwhile firm domestic demand with many festivals is supporting prices at lower levels. In Indonesia and Brazil the pepper price was reduced by $100 per tonne and quoting around $4050 per tonne. Indian prices have declined to $4350 per tonne against $4500 per tonne in the last week. On September contract expiry NCDEX has allocated 291 metric tons of pepper for delivery. However due to weak export demand pepper prices are likely to remain sluggish. Jeera Due to delayed harvesting of kharif crops sowing of jeera is likely to get delayed. However jeera stocks are sufficient to meet the demand till next crop in 2011. Indian export prices are quoting $2800 per tonne while Syria and Turkey are selling at $2700 2750 per tonne. Although there are reports of slight recovery in export demand due to price parity with other countries exporters are not aggressive due to sufficient stocks in the domestic markets. On Saturday arrivals in the Unjha market were 2000 bags largely unchanged from Friday. Turmeric Turmeric prices remained firm due to stable domestic demand. However the major rise in long term may be restricted due to higher output estimate that is 70 lakh bags. Marginal improvement in demand at lower levels is also supporting gain in prices. Stockiest are holding back on expectation of better prices. SOY COMPLEX Market review Soy complex futures opened up sharply on strong buying and ended up with more than 1 percent gain on week end session. Soy bean October NCDEX contract touched 2096 and ended at 2079 levels. Soy oil October contract also gained over 1.5 percent and closed above 500 after one month. Outlook Soy bean futures at CBOT made one year high of 1128 cents per bushel and closed above 1120 levels highest since August 2009. Concerns of crop loss in US due to bad weather conditions and bull run in most of the global commodities are supporting rally in soy complex. Although domestic factors remain quite weak due to higher output and sufficient stocks strong global factors may support further rise in prices in near term. Delay in arrival of kharif edible oil seeds and firm demand for edible oils during this festival season may support further rise in prices. CBOT soy bean is trading at 1133 cents while soy oil futures are trading above 45 cents per pound. For the day ahead soy bean and soy oil futures are expected to rise further on strong global markets. Others Market review Chana Chana prices ended on lower side after firm trading for most of the session on week end. The active contract October NCDEX fell from Rs2275 and closed at Rs2254 levels. Meanwhile spot prices remained firm at Rs2275 per quintal at Delhi. Guar seed Guar seed futures recovered further on bargain buying at lower levels. The active contract October NCDEX made high of Rs2064 and closed at Rs2050 levels. Outlook Chana After stagnant demand for last few weeks there has been marginal rise in buying from mills. Lack of selling from stockiest and bargain hunting at lower levels supported recovery in the market. Meanwhile huge stocks and arrival of kharif pulses may restrict major rally in long term. Spot prices are quoting firm at Rs2275 per quintal at Delhi. Guar seed Delay in arrivals and stockiest buying supporting recovery in prices of guar seed. However fresh arrivals from mid October may restrict major rise in medium term. The backwardation between October and November has widened further to Rs50 per quintal. Guar seed output is estimated at 1 crore bags. For the day ahead guar seed futures are expected to remain strong on buying.

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