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India Spices: Most down, jeera hits 6-week low on higher supply

Informist, Tuesday, Sep 20, 2022

 

By Rahul Dhuri

 

MUMBAI – Barring turmeric, futures contracts of all other spices fell today on the domestic exchanges. Prices of chilli in Andhra Pradesh's Guntur market were largely unchanged, participants said.

 

* The most-active October contract of JEERA hit a six-week low of 24,040 rupees per 100 kg on the National Commodity and Derivatives Exchange, as increased arrivals at physical markets weighed on sentiment. In Gujarat, stockists are releasing their inventory in fear of further fall in prices.

 

* However, the fall in jeera is likely to be restricted by an expected rise in festival demand. Global supply disruption in the wake of lower production in countries like Syria and Turkey will force global buyers to buy jeera from India, said SMC Global Securities in a report. 

 

* Futures contracts of TURMERIC rose on expectations of revival in demand from domestic buyers ahead of the festival season. Lower arrivals in physical markets also supported prices, analysts said.

 

* Arrivals are reported to be 53% lower on year so far this month, as stockists are avoiding heavy selling in anticipation of a further rise in prices, SMC Global Securities said in a report.

 

CORIANDER contracts were in the red on NCDEX as investors booked profits after the recent surge in prices. Increased arrivals in the domestic spot markets further weighed on coriander contracts, analysts said.

 

* Domestic supply has improved as stockists are releasing stocks in fear of further fall in prices, said market participants.

 

* Prices of CHILLI were flat in the benchmark market of Guntur, as arrivals were sufficient to meet demand, traders said.

 

* The Teja variety was sold at 23,500 rupees per 100 kg and the LCA-334 variety at 24,500 rupees, both unchanged from the previous close. Arrivals were pegged at 80,000 bags (1 bag = 40 kg), up 10,000 bags from the previous day.

 

* The near-term outlook for chilli remains weak due to dwindling demand from overseas buyers and domestic spice makers, said Satish Degala, a Guntur-based trader.

 

Following are the prices of the most active contracts of spices as of 1620 IST:

 

Contract 

Exchange

Unit

(kg)

Price

(rupees)

Change

(rupees)

Coriander Oct

NCDEX

   100

10,500

 (-) 94

Jeera Oct

NCDEX

   100

24,575

  (-) 50

Turmeric Oct

NCDEX

   100

7,242 22

 

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

 

CONTRACT

SUPPORT

(rupees)

RESISTANCE

(rupees)

Coriander 

         10,000

             11,600

Jeera

         24,150

             25,950

Turmeric

          6,300

              7,800

 

 

 

 

 

 

 

End

 

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

 

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. 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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