By Nirmal Bang

SPICES COMPLEX

MARKET ROUNDUP

- Spices complex witnessed sharp selling in yesterday's trading session and ended lower except Mentha oil and Chili. Turmeric ended lower on extended profit booking after rising 13% in the last 10 sessions. Pepper and Jeera current contract too traded down on profit booking.

IN FOCUS

- Jeera: Production in 2010 is seen rising to 2.9 million bags of 60 kg each from 2.7 million bags in 2009, the poll showed. The peak arrival season runs from March-April. Jeera exports in February 2010 dropped 17 percent to 2,500 tonnes on year, the Spices Board said.

- Pepper: "Overseas demand is still weak. The price gap between Indian and Vietnam origin pepper is getting wider in the international market and this is distracting overseas buyers. India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks. Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes on year, the Spices Board said. Spot pepper gained 147 rupees to end at 15,157 rupees per 100 kg in Kochi, a major trading hub in Kerala.

- Turmeric: In Nizamabad, a major spot market in Andhra Pradesh, the price gained 49 rupees to 12,538 rupees per 100 kg. Turmeric arrivals usually start in mid-January in small quantities and gain momentum from March. The peak season runs till June. Turmeric exports in February 2010 stood at 2,500 tonnes, down 19 percent from a year ago, according to data from the Spices Board.

- Pepper: "Traders were reluctant to hold long position at higher levels. Overseas demand is not picking up as per expectations. Production is likely to be higher this year," Spot rates in Unjha, a key spot market in Gujarat, dropped 36 rupees to end at 11,975 rupees per 100 kg.

FUNDAMENTAL OUTLOOK

- We expect Pepper and Jeera to trade sideways to up as low stocks may extend some support to the prices. We may see some bounce back in Turmeric today; buying at dips is recommended.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP

- Wheat futures extended its gains on robust buying from Government and Private Players. Chana June contract rose by almost 3% on bargain buying yesterday. Guar complex too traded up on supported by robust export demand and diminishing output estimates.

IN FOCUS

- Foodgrain states Punjab and Haryana Wednesday moved closer to the 130 lakh tonnes mark of wheat arrival this season in the first 20 days of the procurement this year, food and supplies department officials said here. The total wheat arrival this season is six lakh tonnes higher than the arrival in the same period last year in both states.

- India's biggest wheat producing state, Uttar Pradesh, has requested the federal government to relax norms for wheat procurement after reports of some shriveled grains due to high summer temperature, a senior state government official said on Monday

- The rising mercury might have expedited the harvesting of wheat in Punjab and Haryana this Rabi season but this is unlikely to make much dent on total arrivals in the market. The final assessment of the total crop is available after the harvesting is complete but the statistical information available with the departments of agriculture of both the states explains that there is not much to worry.

- The state government of Haryana, India's thirdbiggest wheat producer has withdrawn stock limits on wheat on account of a bumper stock, it said in statement on Saturday. As on April 13, India has purchased 5.75 million tonnes of wheat, sharply up from 1.59 million tonnes in the same period a year ago.

FUNDAMENTAL OUTLOOK

- We expect Wheat and Chana to trade up toady; buying at dips is recommended. Guar too is expected to trade up; buying at each dip is recommended.

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP

- Oilseed complex traded sideways to down trailing the trend in international bourses as stronger dollar pushed the prices in international markets. Cottonseed oil cake rose by more than 1% on short covering yesterday.

IN FOCUS

- Argentina's 2009/10 soybean crop is expected to be a record 52.5 million tonnes, the Agriculture Ministry said on Wednesday as it fine-tuned its forecast for the crop. The government previously estimated the soy harvest at between 51 million and 55 million tonnes. It also held its outlook for corn production at 20.5 million tonnes.

- Argentina, the world's No. 3 soy exporter and the top provider of soymeal and oil, produced 32 million tonnes of the oilseed in the previous drought-hit campaign.

- Private exporters reported the sale of 174,000 tonnes of U.S. soybeans for delivery to China during the 2010/11 marketing year, said the Agriculture Department on Wednesday.

- The 2010/11 marketing year for soybeans opens on Sept. 1. It was the second sale in two days to China for delivery in the new marketing year. On Tuesday, exporters reported 232,000 tonnes to China for 2010/11 delivery.

- India's March oilmeal exports slumped 34 percent from a year earlier, falling for the fifth straight month, due to weak demand from Vietnam, Japan, South Korea, Indonesia, Thailand and China, a trade body said.

- "Palm oil eased on the dollar in Europe and a strong ringgit in Malaysia, but palm oil prices are fluctuating a lot lately, and are under 2,500 ringgit, which keeps buyers sidelined,"

- Certificated Cotton stocks deliverable against the ICE No. 2 cotton futures contract as of Apr 20 totaled 936,997 (480-lb) bales, from 926,761 bales the previous session.

FUNDAMENTAL OUTLOOK

- We expect Wheat and Chana to trade up toady; buying at dips is recommended. Guar too is expected to trade up; buying at each dip is recommended.