Informist, Monday, May 29, 2023
By Afra Abubacker
MUMBAI – Futures contracts of jeera and coriander rose today on the National Commodity and Derivatives Exchange on firm demand and bargain buying, while the most-active June contract of turmeric closed flat.
The most active June contract of JEERA was at 45,775 rupees per 100 kg, up 4% from the previous close. On Friday, the contract had hit an over-one-month-low of 42,880 rupees per 100 kg. Prices in the key wholesale market of Unjha, Gujarat, were up 400 rupees at 45,500-45,900 rupees per 100 kg, traders said.
Jeera prices had surged to a record high of 49,280 rupees per 100 kg in the first week of May on tight carry-over stocks and below-normal arrivals at major markets owing to lower production in Gujarat and Rajasthan.
Moreover, unseasonal rainfall in March had damaged the quality and yield of the crop. While domestic consumption is around 8.0-8.5 mln bags, total output is seen at 6.5 mln bags, according to the Federation of Indian Spice Stakeholders.
Tight supplies and lower availability of good quality produce are prompting millers to buy good quality crop at every price dip, said SMC Global Securities.
CORIANDER contracts rose today on the domestic bourse after trading down for seven straight sessions. The most active June contract was at 6,430 rupees per 100 kg, up 1% from the previous close.
Coriander contracts rose marginally today on firm demand. However, increased supplies from Rajasthan owing to higher production in the state are likely to cap gains. Moreover, demand from stockists is subdued as they are anticipating a further fall in prices.
Prices in the key wholesale market of Kota, Rajasthan, were down 40 rupees at 6,680-6,700 rupees per 100 kg, said traders. Coriander contracts are likely to trade sideways to down unless 6,600 rupees is convincingly breached on the upside, said Geojit Financial Services in a note.
The most active June contract of TURMERIC was steady at 8,050 rupees per 100 kg. Prices in the key wholesale market of Nizamabad, Telangana, were down 50 rupees at 7,250-7,350 rupees per 100 kg, traders said.
Subdued demand for the yellow spice at overseas markets at prevailing price weighed on prices, traders said. However, concerns over production in the wake of bleak monsoon forecasts are likely to support the prices. Turmeric takes nine months to mature, and it is sown during Apr-Jul, with the arrival of pre-monsoon showers. The crop is harvested from January and extends till March. Major turmeric growers are Telangana, Maharashtra and Tamil Nadu.
Following are today’s closing prices of the most active contracts of spices:
End
Edited by Maheswaran Parameswaran
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