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India Spices: Most down on subdued demand; turmeric tad up

Informist, Monday, Aug 14, 2023

 

By Afra Abubacker

 

MUMBAI – Futures contracts of coriander and jeera fell today on the National Commodity and Derivatives Exchange due to subdued demand. Turmeric contracts rose marginally on the back of firm demand and concerns over lower production. 

 

The most-active September contract of JEERA was at 61,510 rupees per 100 kg, down 1% from the previous close. Prices in key wholesale market of Unjha, Gujarat, were down by 400 rupees at 61,200-61,350 rupees per 100 kg, said traders.

 

Jeera prices fell today due to subdued demand amid an improving global supply scenario. Supply from Syria and Turkey will improve in August-September with the commencement of new crop arrivals, said traders.

 

Subdued export inquiries at the prevailing price levels also weighed on jeera prices. Further, arrivals from farmers and stockists are likely to rise in the coming days in anticipation of a further fall in prices, said SMC Global Securities. 

 

However, tight supplies in the domestic market due to lower production are likely to cushion jeera prices, said analysts.

 

The key support in the medium term is observed at around 58,000 rupees. Prices are likely to head towards 65,000 rupees as long as they manage to sustain above 58,000 rupees for the medium term, said Motilal Oswal. 

 

The most-active September contract of CORIANDER was at 7,414 rupees per 100 kg, down 1.3% from the previous close. Coriander futures fell today due to subdued demand. Increased arrivals due to favourable dry weather conditions also weighed on prices.  

 

However, prospects of increased demand for Indian coriander in the wake of lower global supply are likely to boost sentiment. "Supply from the Black Sea is expected to decline as Russia exited from the grain deal with Ukraine which will affect the arrival pace adversely," said SMC Global Securities. Russia, Bulgaria, and Ukraine are global suppliers of the aromatic spice. 

 

Prices in the key wholesale market of Kota, Rajasthan, were steady at 7,500-7,600 rupees per 100 kg, said traders.

 

The most-active October contract of TURMERIC was at 16,930 rupees per 100 kg, up 0.1% from the previous close. Prices in key wholesale markets of Nizamabad in Telangana were largely steady at 14,000-14,300 rupees per 100 kg, said traders.

 

Turmeric futures marginally gained today on the back of firm demand amid concerns over lower production. Turmeric acreage is estimated to fall 10-15% on year as farmers have shifted to more lucrative crops, according to SMC Global Securities. Acreage in 2022-23 was 323,838 ha, data from the Spices Board showed.

 

"The trend for turmeric is positive. Turmeric prices have witnessed robust momentum in the last few weeks. The key immediate support is now observed at around 14,700 rupees. As long as prices sustain above this level, we could witness the upside momentum to continue in the counter, which could push prices beyond 18,000 rupees in the medium term," said Motilal Oswal. 

 

Following are today's closing prices of the most-active contracts of spices:

 

Contract 

Exchange

Unit

(kg)

Price

(rupees)

Change

(rupees)

Coriander Sep 

NCDEX

   100

 7,414  (-)100

Jeera Sep

NCDEX

   100

 61,510

 (-)530

Turmeric Oct

NCDEX

   100

 16,930

 26

 

End

 

Edited by Tanima Banerjee

 

 

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