Informist, Friday, Dec 15, 2023
By Romeo M. Raj
MUMBAI – Jeera futures on the National Commodity and Derivatives Exchange rose significantly because of short covering by market participants, analysts said. Turmeric futures fell because of low demand in both domestic and overseas markets, while coriander futures rose slightly due to lower acreage and high export demand, said analysts.
The most-active January contract of JEERA closed at 40,105 rupees per 100 kg, up 5.4% from the previous close. The contract had hit a seven-month low of 35,180 rupees on Tuesday.
Jeera January futures fell as market participants covered short positions, said analysts.
Jeera prices were on a downtrend and now, there is higher demand for the spice at lower price levels, said Ravi Shankar Pandey, senior analyst at SMC Global Securities.
For the week, support for jeera futures is seen at 35,000 rupees, while resistance is pegged at 46,700 rupees, said Pandey of SMC Global.
In the benchmark market of Unjha, Gujarat, spot prices of jeera were at 45,000 rupees per 100 kg, up 1,500 rupees from the previous trading day, said Anuj Mittal, a local trader.
The most-active April contract of TURMERIC closed in the red again at 14,750 rupees per 100 kg, down 1.3% from the previous close. The contract had touched a six-week low of 14,128 rupees on Tuesday.
The April contract has now ended in the red for six of the seven sessions since Dec 6.
Prices fell because of weak export demand, as evident from commerce ministry data, said Pandey of SMC Global. According to the data, exports of turmeric in September were down 35% on year at 9,086 tn,
Turmeric futures fell as the new crop is expected to arrive in Telangana from January, and demand for old stocks is low, said Gupta of Kedia Advisory.
The April contract of turmeric will face resistance near 15,500 rupees and support is seen at 13,800 rupees for next week, said Pandey of SMC Global.
In the benchmark market of Nizamabad, Telangana, spot prices of polished turmeric were at 13,800 rupees per 100 kg, 700 rupees lower than the previous trading day, said Vikas Nagla, a local trader.
The most-active January contract of CORIANDER continued its uptrend for the third consecutive session and closed at 7,710 rupees per 100 kg, up 0.4% from the previous close. Earlier today, the contract hit a one-week high of 7,788 rupees.
Strong export demand lifted prices of the spice, said Pandey of SMC Global. Data from the commerce ministry showed that coriander exports surged a whopping 298% on year to 66,207 tn during the first half of the current fiscal year. India is a major producer and exporter of this spice.
Coriander production in Russia and Ukraine has been affected by the war, and demand for Indian coriander has increased as it is cheaper compared with other origins, said Satyanarayan Gupta, a local trader in Kota.
The acreage in Gujarat as of Monday was down 47.8% on year at 108,194 ha, according to data released by the state agriculture department. Gujarat is the second-largest producer of the spice.
The weather in the key growing states of Madhya Pradesh, Gujarat, and Rajasthan isn’t very conducive for the crop, which led to the uptrend in prices, said Gupta.
Support for coriander is seen at 7,100 rupees and resistance is at 8,200 rupees for the next week, Pandey of SMC Global said.
In the key wholesale market of Kota, Rajasthan, spot prices rose 200 rupees from the previous trading day to 7,800 rupees per 100 kg, said Gupta.
Following are today’s closing prices of the most-active spice contracts:
End
Edited by Avishek Dutta
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