Informist, Monday, Oct 9, 2023
By Afra Abubacker
MUMBAI – Spices complex traded down today on the National Commodity and Derivatives Exchange due to subdued demand. Turmeric futures ended down 5.7% as market participants booked profits.
The most-active December contract of TURMERIC was at 14,700 rupees per 100 kg, down 5.7% from the previous close. On Friday, the contract hit an over one-week high of 16,418 rupees per 100 kg.
Turmeric futures fell as market participants booked profits. Subdued export demand during Oct-Dec weighed on turmeric prices. “Turmeric export pace remains stable during Oct-Dec as major buyers keep away from bulk deal ahead of commencement of fresh arrivals in January,” said SMC Global Securities in a report.
Additionally, export demand is likely to fall further at prevailing price levels. “Considering the price competitiveness of turmeric, it seems exports are likely to remain subdued in coming months, which will put pressure on prices,” said SMC Global.
Turmeric prices had risen on concerns over lower production due to a drop in acreage. However, the availability of higher carry-forward stocks and subdued demand at the prevailing price levels weighed on the prices.
Prices in the key wholesale market of Nizamabad in Telangana were down 200 rupees at 12,800-13,400 rupees per 100 kg, said traders. Prices are likely to be largely steady in October with rise and fall of 1,000 rupees, said Vikas Nagla, a local trader.
The most-active November contract of JEERA was at 59,075 rupees per 100 kg, down 1% from the previous close. Subdued demand at prevailing price levels and prospects of higher production in the upcoming season weighed on jeera prices. However, the prices are likely to remain firm as supplies are likely to remain tight for the next five months as new crop arrivals will only hit the markets from February and pick up pace in March, said analysts.
Prices in the key wholesale market of Unjha in Gujarat were down 300 rupees at 59,200-59,500 rupees per 100 kg, said traders.
“Area under jeera is estimated to increase due to better price realization. However, dry weather condition in October is likely to keep soil moisture down, which will impact the sowing activities adversely,” said SMC Global Securities in a report.
The most-active November contract of CORIANDER was at 6,960 rupees per 100 kg, down 2% from the previous close. Subdued demand from spice millers and increased supplies in the domestic market weighed on coriander prices.
“Demand from spice millers is slack during the month as grinding is low due to higher moisture content in coriander,” said Kota-based trader Satya Narayan Gupta.
Going forward, coriander prices are likely to track the sowing figures and coriander acreage is estimated to fall in the wake of higher stocks and lower prices, said SMC Global. Prices in the key wholesale market of Kota, Rajasthan, were up 100 rupees at 7,100-7,200 rupees, said traders.
Following are today’s closing prices of the most-active contracts of spices:
End
Edited by Manisha Baxla
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