Mumbai - Extending the sharp gains of the previous session, the spices on National Commodity and Derivatives Exchange [NCDEX] were trading higher amid speculative buying during the initial hours Saturday. The futures had accumulated sharp gains yesterday following lifting of 'extra margin' in futures by the NCDEX. Black pepper futures gained heavily while turmeric futures too scaled sharp gains with higher volume of trade.

On Friday, acting on the directives from the Forward Market Commission [FMC], the NCDEX decided to lift 'extra margins' from the futures of black pepper, jeera, chana, guar gum, guar seed, red chilli, mentha oil and maize. The decision will be effective from December 24, 2007.

Adding to the previous gains, black pepper futures were trading higher on the domestic exchange Saturday. At 10.28 am IST, January-08 black pepper futures went up Rs 77 to trade at Rs 13,341/quintal. Benchmark February-08 contract rose Rs 83 to trade at Rs 13,660/quintal. Volume in Jan-08 and Feb-08 contracts was 405 tonnes and 714 tonnes respectively.

At the spot markets Friday, black pepper rose further by Rs 100/quintal at the main market Kochi. The decision to lift extra margin in black pepper futures provided support to spot prices. Ungarbled pepper traded at Rs 12,600/quintal at Kochi spot while MG-1 grade was quoted at Rs 13,200/quintal. Traders say, the importers from US and Europe are in vacation mood for Christmas, and their enquiries will start next month.

Jeera futures too carried forward previous gains and were trading higher Saturday. At 10.32 am IST, January-08 jeera futures jumped Rs 69 to trade at Rs 10,267/quintal. Benchmark February-08 futures surged Rs 62 to trade at Rs 10,538/quintal. Volume for Jan-08 and Feb-08 contracts was 519 and 852 tonnes respectively.

Spot prices of jeera continued to be steady at the main market Unjha in Gujarat and Jodhpur in Rajasthan amid lack of enquiries from exporters Friday. At Unjha, NCDEX quality jeera traded steady at Rs 10,900/quintal, while average quality was offered Rs 10,100/quintal. Total arrival rose to around 3000 bags while trade volume was estimated at 5000 bags. Traders and importers from Singapore are in vacation mood for Christmas and are likely to start enquiries next month.

Turmeric futures were extending the previous gains on the exchange. At 10.28 am IST, April-08 turmeric contract was trading up Rs 15 at Rs 2820/quintal with a total volume of 6400 tonnes. Benchmark May-08 futures accumulated Rs 12 to trade at Rs 2865/quintal with a volume of 2040 tonnes.

Spot turmeric extended recent gains and traded higher by Rs 75/quintal at main market Sangli Friday. Erode, Warangal and Duggirala markets were closed on the occasion of Bakr-Idd festival. Spot prices have been surging since last few days on reports that the next turmeric crop will be 30% less than the estimates. Turmeric prices in the new season are likely to open at Rs 3000/quintal.

Retaining the green territory after yesterday's gains, red chilli futures were on the upward move on the NCDEX. At 10.32 am IST, February-08 red chilli contract rose Rs 10 to trade at Rs 3806/quintal with a volume of 75 tonnes. March-08 contract jumped Rs 27 to trade at Rs 3690/quintal with a volume of five tonnes.