Informist, Monday, Jul 18, 2022

By Kavita Desai

MUMBAI – Futures contracts of most spices, barring turmeric ended higher on the domestic exchanges today. Prices of chilli rose in the benchmark market of Guntur, Andhra Pradesh, market participants said.

* JEERA futures rose sharply over 3% on the National Commodity and Derivatives Exchange due to strong demand from bulk buyers

owing to tight supply caused by a drop in production in the ongoing 2021-22 (Jul-Jun) season, said Dinesh Bhattar, a trader in Jodhpur.

* Traders expect jeera production at 5.0-6.0 mln bags (1 bag = 55 kg), compared with 8.0-8.5 mln bags the previous year.

* In Unjha, the benchmark market in Gujarat, the price of exchange-quality jeera was at 23,200-23,500 rupees per 100 kg, up 500 rupees from Saturday. Arrivals were pegged at 17,000 bags, compared with 13,000 bags on Saturday.

* CORIANDER contracts also gained tracking other commodities in the spice complex. However, prices in Ramganj remained steady, said Giriraj Gupta, a Ramganj-based trader. 

* Today, in Ramganj, a key trading centre in Rajasthan, the badami variety was sold at 12,900 rupees per 100 kg and the eagle variety at 13,400 rupees. The arrivals were pegged at 5,000 bags (1 bag = 45 kg) compared with 2,500 bags on Friday.

* On Saturday, market was shut as most trade organisations have called for a one-day strike to protest against levying of GST on unbranded package food items, said Gupta. 

* TURMERIC futures closed lower on progress in sowing as monsoon has covered most key producing states. However, prices in 

Telangana's benchmark Nizamabad market rose due to pick up in demand amid improved arrivals, said Vikas Nagla, a local trader.

* Arrivals in the Nizamabad market were negligible over the last couple of days as farmers were unable to bring the produce due to heavy rainfall, said Nagla.

* Prices of CHILLI rose today in the benchmark market of Guntur, Andhra Pradesh, because of robust buying from local and overseas buyers. Demand from Bangladesh, Malaysia and Indonesia has gained pace, which further supported the prices, said Ashok Jain, proprietor of Ankur Enterprises in Guntur.

* In Guntur, the Teja variety was sold at 24,000 rupees per 100 kg, up 1,000 rupees from Friday. The LCA-334 variety was sold at 26,000 rupees, up by 500 rupees from previous day. Today, arrivals were pegged at 80,000 bags (1 bag = 40 kg), compared with 50,000 bags on the previous day.

* Prices are expected to be firm in the near term because of lower crop estimates for 2021-22 (Jul-Jun) season and lower availability of premium quality spice in the market, said traders.

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

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

End

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

Edited by Sushmita Mukherjee

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