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India Spices: Down; jeera slips on weak spot market cues, low demand

Informist, Wednesday, Apr 7, 2021

 

By Kavita Desai

 

MUMBAI – Futures contracts of spices on domestic exchanges ended lower today.

 

* CORIANDER futures on the National Commodity and Derivatives Exchange declined as investors booked profits after sharp gains on Tuesday, when the most active May contract hit a three-month high of 7,662 rupees.

 

* Weak cues from the spot market also weighed on prices. In Ramganj, a key market in Rajasthan, the badami variety was sold at 7,200 rupees per 100 kg, and the eagle variety at 7,600 rupees, both down 100 rupees from Tuesday.

 

* JEERA futures closed lower, tracking the spot market, where lack of strong demand and higher arrivals weighed on prices, said Pawan Agarwal, a trader in Unjha.

 

* In Unjha, the benchmark market, exchange-quality jeera was sold at 14,400 rupees per 100 kg, down 100 rupees from Tuesday. Arrivals were pegged higher at 50,000 bags (1 bag = 55 kg), from 40,000 bags the previous day.

 

* In a report, Kotak Securities said that it expects jeera prices to hover in a narrow range with a negative bias, mainly due to supply pressure of new crop in the physical market and the surge in COVID cases in many countries.

 

TURMERIC prices settled lower by more than 1% due to subdued demand coupled with supply pressure from the new crop in key trading centres, said traders.

 

* MENTHA OIL contracts on the Multi Commodity Exchange of India fell due to tepid demand outlook.

 

* CHILLI prices in Guntur, the benchmark market in Andhra Pradesh, were down due to weak demand from bulk buyers for poor quality of the commodity in the market, said traders.

 

* In Guntur, the Teja variety was sold at 13,500-15,200 rupees per 100 kg, and LCA-334 variety was sold at 11,000-12,000 rupees, down 200 rupees from the previous day. Arrivals in Guntur were steady at 125,000 bags (1 bag = 40 kg). 

 

* "Quality of Teja variety, which is largely exported, has also gone down substantially, which led to slowdown in overseas demand," said Ashok Dattani, an exporter based in Mumbai.

 

Following are the prices of the most active contracts of spices at 1700 IST:

Contract

Exchange

Unit

(kg)

Price

(rupees)

Change (rupees)

Coriander May

NCDEX

100

7,366(-) 84

Jeera May

NCDEX

100

14,620(-) 250

Turmeric May

NCDEX

100

8,250(-) 160

Mentha oil Apr

MCX

1

952.3(-) 5.9


* Following are the expected support and resistance levels for contracts of spices for trade for Thursday:

CONTRACT

SUPPORT

(rupees)

RESISTANCE

(rupees)

Coriander 

7,0007,600

Jeera

14,20015,000

Turmeric

8,0008,750

Mentha oil 

932985

 

 

 

 

 

 

 

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Patricia Hou

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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