Informist, Friday, Dec 1, 2023
By Romeo M. Raj
MUMBAI – Jeera futures on the National Commodity and Derivatives Exchange fell due to a rise in acreage and weak export demand, and futures of coriander were down as market participants booked profits. Futures contracts of turmeric fell due to sluggish export demand for the spice.
The most-active December contract of JEERA closed at 44,300 rupees per 100 kg, down 0.7% from the previous close.
Jeera was sown over 244,639 ha this season, up 116% on year, as per data released by the Gujarat state agriculture department on Tuesday. Higher acreage of the crop in the key producing state of Gujarat led to a drop in prices, said Ravi Shankar Pandey of SMC Global Securities.
Export demand for the spice has been low at prevailing rates as global buyers aren’t interested in Indian jeera due to uncompetitive prices and quality issue, SMC Global Securities said in a report.
For next week, support for jeera futures is seen at 39,000 rupees per 100 kg, while resistance is at 48,900 rupees per 100 kg, said Pandey of SMC Global.
Spot prices of jeera in the key wholesale market of Unjha, Gujarat, were steady at 47,000 rupees per 100 kg, said Anuj Mittal, a local trader.
The most-active December contract of TURMERIC closed at 12,536 rupees per 100 kg, down 2% from the previous close.
“Exports have been sluggish in recent months and that weighed on market sentiments. Losses in turmeric are likely to be limited due to weaker production prospects for the upcoming season,” said SMC Global.
Turmeric prices fell as market participants anticipated the release of stocks ahead of the commencement of new crops in January and improved crop conditions due to favourable weather, Kedia Advisory said in a note.
Turmeric will face resistance near 13,200 rupees and support is seen at 11,600 rupees for next week, said Pandey of SMC Global.
The key wholesale market of Nizamabad in Telangana reopened after the state Assembly elections on Thursday, and the spot price for polished turmeric was steady at 13,500 rupees per 100 kg, said Vikas Nagla, a local trader.
The most-active December contract of CORIANDER closed at 8,148 rupees per 100 kg, down 1.1% from the previous close.
Coriander prices fell as market participants booked profits at higher levels. The contract had touched a 10-month high of 8,462 rupees per 100 kg on Wednesday.
However, losses will be limited due to low sowing and firm export demand for the spice. The acreage of coriander was down 63.8% at 56,737 ha, as per data released by the Gujarat agriculture department on Tuesday. Gujarat is the second-largest producer of coriander.
Coriander will face resistance near 8,800 rupees and support is seen at 7,700 rupees for next week, Pandey said. Spot prices in the key wholesale market of Kota, Rajasthan, were up 200 rupees at 7,800 rupees per 100 kg, said Manish Gupta, a local trader.
Following are today’s closing prices of the most active spice contracts:
End
Edited by Avishek Dutta
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