Informist, Tuesday, Dec 5, 2023
By Romeo M. Raj
MUMBAI – Jeera futures on the National Commodity and Derivatives Exchange fell for the fifth successive day as sowing increased in key producing states and export demand dropped significantly. Coriander futures fell more as market participants booked profit. Futures contracts of turmeric rose on lower production prospects and improved export demand for the spice.
The most-active December contract of JEERA closed at a one-month low of 38,990 rupees per 100 kg, down 6% from the previous close.
As of Monday, jeera was sown over 376,020 ha, up 161% on year, as per data released by the Gujarat state agriculture department.
The latest sowing data from another key producing state, Rajasthan, showed that the spice was sown at 630,168 ha as of Monday, higher than the numbers reported by top producer Gujarat. Higher acreage of the crop in the key producing states of Gujarat and Rajasthan weighed on prices, said Ravi Shankar Pandey, senior analyst at SMC Global Securities.
The sentiment was also weighed down by weak export demand. Jeera exports dropped by 65% on year in September to 5,960 tn, as compared to 17,155 tn the previous year. During Apr-Sep, jeera exports have slumped 32% on year to 70,140 tn, as per the export data by the commerce ministry.
For this week, support for jeera futures is seen at 36,000 rupees per 100 kg, while resistance is at 44,000 rupees per 100 kg, said Pandey of SMC Global.
Spot prices of jeera in the key wholesale market of Unjha, Gujarat, were down 3,000 rupees at 43,000 rupees per 100 kg, said Anuj Mittal, a local trader.
The most-active December contract of TURMERIC closed at 12,750 rupees per 100 kg, up 3.1% from the previous close. The contract closed higher today after falling for four straight sessions.
Turmeric futures rose due to weaker production prospects for the upcoming season, said SMC Global. Improved export demand also supported turmeric prices. Turmeric exports rose 4.1% on year during Apr-Sep to 92,025 tn, as per the export data by the commerce ministry.
Turmeric will face resistance near 13,200 rupees and support is seen at 11,600 rupees for this week, said Pandey of SMC Global.
Spot prices for polished turmeric in the key wholesale market of Nizamabad, Telangana, were up 500 rupees at 13,500 rupees per 100 kg, said Vikas Nagla, a local trader.
The most-active December contract of CORIANDER ended in the red for the fourth straight session at 7,404 rupees per 100 kg, down 3.6% from the previous close.
Traders continued to trim their bullish positions on the domestic bourse in anticipation of further downside in prices after touching a 10-month high of 8,462 rupees per 100 kg on Wednesday.
Coriander will face resistance near 8,400 rupees and support is seen at 7,000 rupees for this week, Pandey of SMC Global said. Spot prices in the key wholesale market of Kota, Rajasthan, were down 200 rupees at 7,400 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 Manisha Baxla
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