Informist, Tuesday, Jun 6, 2023
By Afra Abubacker
MUMBAI – Futures contracts of coriander and turmeric declined on the National Commodity and Derivatives Exchange due to increasing supplies and subdued demand, while jeera futures gained on low supplies in major markets.
The most-active July contract of JEERA was at 46,755 rupees per 100 kg, up 2.2% from the previous close. Prices in the key wholesale market of Unjha, Gujarat, were steady at 46,300-46,400 rupees per 100 kg, traders said.
Jeera prices rose amid tight supplies in major markets due to weak production in Gujarat and Rajasthan. Lower carry-over stocks and lower availability of good-quality produce after unseasonal rainfall also aided prices.
However, domestic and export demand has slowed down at prevailing levels. "A fall below the support of 44,600 rupees may call for a downside correction towards 44,200-43,600 rupees," said Geojit Financial Services in a note.
The most-active August contract of TURMERIC was at 7,790 rupees per 100 kg, down 1% from the previous close. Prices in the key wholesale market of Nizamabad, Telangana, were largely steady at 7,200-7,300 rupees.
Domestic and overseas demand have slowed down amid increasing supplies at major markets at prevailing levels, traders said.
Arrivals surged last month as farmers got better price realisation, but the quality of the crop was questionable because of damage caused by rain. Demand from stockists and spice millers is subdued as they are anticipating a further fall in prices, said SMC Global Securities.
The most-active July contract of CORIANDER was at 6,048 rupees per 100 kg, down 1% from the previous close. Prices in the key wholesale market of Kota, Rajasthan, were down 200 rupees at 6,350-6,400 rupees per 100 kg, traders said.
Increased supplies due to higher production in Gujarat and Rajasthan and weak demand are weighing on coriander prices. Coriander prices have halved from 12,000 rupees per 100 kg since the sowing season started in October to around 6,000 rupees in June.
Coriander is a rabi crop, sown from October to December. It takes three months to mature and harvesting is done from January till April. Farmers had shifted to coriander cultivation last year as weather conditions were favourable and returns were lucrative. Last April, coriander prices hit a seven-year-high of 13,000 rupees per 100 kg.
"Pullbacks in coriander contracts to 6,180-6,240 ranges may not be ruled out before the contracts resume declining," said Geojit Financial Services.
Following are today's closing prices of the most-active contracts of spices:
Contract | Exchange | Unit (kg) | Price (rupees) | Change (rupees) |
|---|---|---|---|---|
Coriander July | NCDEX | 100 | 6,048 | (-)50 |
Jeera July | NCDEX | 100 | 46,755 | 1,025 |
Turmeric June | NCDEX | 100 | 7,790 | (-)76 |
End
Edited by Maheswaran Parameswaran
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