Informist, Friday, Aug 12, 2022

By Kavita Desai

MUMBAI – Futures contracts of all spices closed higher on the domestic exchanges today. Spot prices of chilli were steady in the benchmark market of Guntur, Andhra Pradesh, market participants said.

* JEERA futures on the National Commodity and Derivatives Exchange hit the 4% upper circuit due to tight supply amid lower production estimates for 2021-22 (Jul-Jun), said Mahesh Yadav, a trader in Unjha.

* In the 2021-22 season, jeera production was estimated at 725,651 tn as against 795,310 tn a year ago, according to data from the Spices Board India. The fall in estimates is mainly attributed to lower acreage in Rajasthan and Gujarat, the key producers.

* Gains in Gujarat's benchmark Unjha market also supported the prices. In Unjha, exchange-quality jeera was sold at 24,000-24,300 rupees per 100 kg, up 100 rupees from Wednesday. Arrivals were pegged at 6,000 bags (1 bag = 55 kg) compared with 9,000 bags on Wednesday. The market was shut on Thursday on account of Raksha Bandhan. 

* TURMERIC futures gained over 2% due to short covering after a sharp fall in prices. Earlier today, the most active September contract hit a fresh 10-month low of 7,100 rupees per 100 kg.

* Recently, turmeric futures declined due to sluggish demand from bulk buyers and ample stock in consuming centres, said Amrutlal Kataria, a Nizamabad-based trader.

* Progress in sowing and weak overseas demand also weighed on turmeric prices, said Kataria.

* CORIANDER futures ended higher tracking gains in other spices futures. Outlook for the commodity remains weak due to tepid

demand from local stockists and masala manufacturers.

* Prices of CHILLI were steady in the benchmark market of Guntur, Andhra Pradesh. Prices are seen higher in near-term due to firm demand from domestic and overseas buyers, said Ashok Jain, a Guntur-based trader adding that demand from Bangladesh, a key importer, has also improved.

* In Guntur, the Teja variety was sold at 24,000 rupees per 100 kg, while the LCA-334 variety was at 26,000 rupees, both steady from Thursday. Today, arrivals were pegged at 45,000 bags (1 bag = 40 kg), compared with 50,000 bags on previous day. 

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 Maheswaran Parameswaran

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