Also, restricted arrivals in the spot markets from producing regions further fueled the upside in cardamom prices.

At the MCX cardamom for delivery in May month spurted by Rs 33.70, ($0.64, €0.49, ￡0.40) or 3% to Rs 1,157.10 ($22.04, €16.66, ￡13.59) per kg in business turnover of 156 lots.

In a similar fashion, the June contract shot up by 34.30, or 3% to Rs 1,177.50 ($22.43, €16.96, ￡13.83) per kg in 66 lots.

Traders said apart from firming trend at spot market on the back of strong demand in the spot market due to marriage season, restricted arrivals from Southern producing region mainly pushed up cardamom prices at futures trade.

www.keresspices.com

Tight supplies in the physical market following restricted arrivals from producing regions further fueled uptrend in cardamom prices.

At the Multi Commodity Exchange, the April contract rose by Rs 28.60 ($0.58, €0.43, £0.37), or 3% to Rs 981.30 ($19.91, €14.87, £12.57) per kg in business turnover of 743 lots.

The March contract moved up by Rs 24.40 ($0.50, €0.37, £0.31), or 2.74%, to Rs 915.60 ($18.58, €13.88, £11.73) per kg in 2,932 lots.

Market analysts said increased buying by speculators on the back of strong demand in the spot market in view of the marriage season mainly pushed up cardamom prices at futures trade.

www.keresspices.com

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Cardamom exports may touch 1.5k tonne mark

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Cardamom exports may touch 1.5k tonne mark

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With exports racing towards  a new high and the domestic demand  remaining strong, the average cardamom prices have surpassed the Rs. 1,000 per kg mark for the first time.

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The cardamom exports  for November 2009 stood at 275 tonne, taking the total exports in the april November period to 895 tonne compared with 370 tonnes  in the same period of the previous year.

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In 2008-09, the cardamom export was 750 tonne.

With another four months to go  the growers and traders feel the export could register a new record this year.  That is something in the range of 1,500 tonne.

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The harvest period is over and the growers are releasing  their stock to take advantage of the high price.

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The upcountry buyers  are continuing their  purchase fearing a scarcity of the spice  in February as the existing stock with the growers could be exhausted.

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The growers are expecting the prices to move further to 1200 per kg in the coming weeks with arrivals thining.

A lower production in the current year has also aided the rise in prices.

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In Other major Commodities Updates, we have info on the ATMA recommendations to the Govt to suspend the tradings of rubber futures.

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Suspend rubber futures – ATMA :

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Unusual volatility in natural rubber prices, despite peak production season and record imports, smacked of speculative  manipulation in the commodity.

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This view has been put forth by the association of automotive tyres manufacturers  association (ATMA).

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ATMA has therefore, called for a suspension of futures trading in rubber in the wake of the  unusual volatility in natural rubber prices.

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“As immediate and direct fallout of heavy speculative activity in natural rubber futures trading, the physical market for rubber is being unduly affected”.

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R Singhania, chairman of the ATMA has said so in a note sent to commerce and industry minister Anand Sharma and agriculture minister Sharad pawar.

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Imposition of Addl. Margin on Turmeric

Imposition of Addl. Margin on Turmeric

As per notification & NCDEX Bye laws, Rules and Regulations of the Exchange, in addition to existing margins, special margin of 10% on long side will further be imposed on all running contracts of Turmeric (Symbol : TMCFGRNZM), effective from the beginning of trading day November 4, 2009.

Thus the total special margin on the long side of all running contracts and yet to be launched contracts in Turmeric shall be 20% with effect from November 4, 2009.

In Other major Agri Updates we can see that Corn, Soybeans have Dropped as rally to One-Week High may erode Demand whereas Strong Demand has kept Cardamom firm.

Corn, Soybeans Drop as Rally to One-Week High

May Erode Demand :

Corn and soybeans declined for the first time in three days on speculation that their rally to one-week highs may reduce demand for U.S. supplies.

Wheat climbed. Corn gained 6.6 percent the past two days and the oil-seed rose 3.5 percent after wet, freezing weather delayed Midwest harvests last month.

As well production in the U.S. may be curbed by above factors. USA is the largest grower and exporter of both crops.

The U.S. Department of Agriculture will update its crop forecasts on Nov. 10.

The soybean crop will reach 3.325 billion bushels, less than the Oct. 7 forecast of 3.411 billion, the Linn Group said.

Last month, the USDA predicted a record 3.25 billion bushels, up from 2.967 billion collected in 2008.

In another Update,

Demand keeps cardamom firm :

The average cardamom prices vacillated between Rs 670 and Rs 710 a kg during last week at auctions held in Kerala and Tamil Nadu and good demand despite heavy arrivals.

In fact, the arrivals at the KCPMC auction on Sunday at Vandanmettu were the highest with 75 tonnes, ever since the commencement of e-auction in December 2007.

Buyers both domestic and export were active.

Around 35 to 40 tonnes of cardamom was bought by exporters. North Indian buyers were covering for their requirements for the winter.

They were actively buying on the apprehension that the prices might go up further in the coming days due to a likely squeeze in supply once the peak harvesting season gets over.

The weighted average price as on November 1, 2009 stood at Rs 681.11 a kg as against Rs 593.83 a kg on the same day last season.

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