Informist, Monday, Jun 5, 2023
By Afra Abubacker
MUMBAI – Coriander futures contracts fell further and hit an over-two-year low on the National Commodity and Derivatives Exchange today on increased arrivals in major markets and tepid demand. Jeera contracts rose on the domestic bourse on firm demand and tight supplies.
The most-active July contract of CORIANDER was at 6,098 rupees per 100 kg, down 2.2% from the previous close. Earlier in the day, the contract hit a low of 6,080 rupees, the lowest level in more than two years. Prices in the key wholesale market of Kota, Rajasthan, were down 100 rupees at 6,500 rupees per 100 kg, traders said.
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 on higher production and weak demand.
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 fetched a seven-year-high price of 13,000 rupees per 100 kg.
Due to higher acreage and increased yields, coriander supplies are in surplus. Demand from spice makers is dull as they have almost completed their bulk purchases, said Satya Narayan Gupta, a Kota-based trader.
Today major markets saw arrivals a little over 100,000 bags (1 bag = 45 kg). Gujarat saw the arrival of around 40,000 bags while Rajasthan and Madhya Pradesh saw 20,000 bags and 45,000 bags, respectively, said Gupta.
Traders and analysts expect prices to fall further by 200–300 rupees in the coming weeks. There may be some pullback in prices, but the fundamentals for coriander are poor on account of higher production in Gujarat and Rajasthan, said Ravi Shankar Pandey, a senior analyst with SMC Global Securities.
“If prices breach the major support of 5,500-5,700 rupees, then prices may fall to 5,200 rupees per 100 kg,” Pandey said.
The most-active July contract of JEERA was at 45,700 rupees per 100 kg, up 1% from the previous close. Prices in the key wholesale market of Unjha, Gujarat, were up 300 rupees at 46,300-46,400 rupees per 100 kg, traders said.
Jeera prices rose on firm demand and tight supplies in major markets. Lower carry-over stocks and lower availability of good-quality produce after unseasonal rainfall also aided prices.
Jeera contracts may trade sideways with a mild positive bias as long as the support level of 44,600 rupees holds. A fall below this may call for a downside correction towards 44,200-43,600 rupees, said Geojit Financial Services in a note.
The most-active June contract of TURMERIC was flat at 7,530 rupees per 100 kg. Prices in the key wholesale market of Nizamabad, Telangana, were largely steady at 7,200-7,300 rupees.
Tepid domestic and overseas demand amid increasing supplies at major markets are weighing on turmeric prices. Arrivals surged last month as farmers got better price realisation, but the quality of the crop was questionable because of rain damage. Demand from stockists and spice millers is subdued at prevailing levels as they are anticipating a further fall in prices, said SMC Global Securities.
Following are today’s closing prices of the most-active contracts of spices:
End
Edited by Rajeev Pai
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