India turmeric futures reverse gains on rain

India turmeric futures erased early gains to end steady on Wednesday on rainfall in key producing states like Andhra Pradesh, Karnataka and Maharashtra and on forecast of more rains in next five days, analysts said.

« Growing areas have been receiving rains for last three-four days. They will erase some of the damage caused by dry spell in June-July. But in the short-term, supply crunch will remain, » said Ajeet Kumar, research analyst, SMC Comtrade Ltd.

In Nizamabad, a major spot market in Andhra Pradesh, the prices fell by 77 rupees to 7,852 rupees per 100 kg. Thin stocks and festive demand limited the downside, they said.

At the end of June, trade estimates put stocks in the country at 1.35 million bags, while demand for June to February period is pegged at 2.2 million bags. The peak turmeric arrival season begins from March.

Following are the closing prices of turmeric futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd.

 Contract   Reuters code    Closing price    Change in %

 =========================================================

   Sep       NTMU9          7,259           0.18

   Oct       NTMV9          7,057          -0.47

Source : Reuters