Informist, Tuesday, Dec 26, 2023
By Afra Abubacker
MUMBAI – Futures contracts of coriander and jeera fell on the National Commodity and Derivatives Exchange due to subdued demand for the spices. Turmeric futures hit a two-month high of 14,488 rupees per 100 kg due to bleak production prospects and emerging domestic demand, market participants said.
The most active April contract of TURMERIC was at 14,294 rupees per 100 kg, up 0.6% from the previous close. Earlier in the day, the contract hit a two-month high of 14,488 rupees per 100 kg.
Weaker production prospects and emerging buying in the domestic market supported turmeric prices. However, sluggish export demand is likely to cap further gains, said SMC in a note.
The area under turmeric in Telangana is 10-15% lower in 2023-24 compared to last year, while in Maharashtra, it may fall in the range of 15-20%, said Vikas Nagla, a local trader from Nizamabad.
Spot prices of turmeric in the benchmark market of Nizamabad, Telangana, were unavailable today as the market was shut on account of Boxing Day holiday, Amrutlal Kataria, a local trader, said. The market will reopen on Wednesday, he said.
The most-active January contract of CORIANDER was at 7,274 rupees per 100 kg, down 2% from the previous close. Increased supplies and subdued demand for the spice in the domestic market weighed on prices.
“Improved crop conditions in Rajasthan and Madhya Pradesh have put pressure on market sentiments…Market is in a profit-booking mood in the wake of limited physical buying,” said Ravi Shankar Pandey, senior analyst at SMC Global Securities.
Stockists are disposing of old stocks before the new crop arrival season begins from mid-January onwards, said Satya Narayan Gupta, a Kota-based trader. Meanwhile, demand is very slow in the wake of the year-end holidays, said Gupta.
In the key wholesale market of Kota, Rajasthan, spot prices were down 100 rupees at 7,400-7,500 rupees per 100 kg, said traders.
The most-active January contract of JEERA closed at 35,855 rupees per 100 kg, down 6% from the previous close. On Friday, the contract hit a four-day high of 38,480 rupees per 100 kg.
Bleak export demand and increased production in the ongoing sowing season are weighing on jeera prices. However, emerging domestic demand at lower price levels is likely to cushion prices, said SMC Global in a note.
A voluminous break from 35,000-41,000 levels from either side of the aforementioned range may lend fresh direction to prices, said Geojit Financial Services in a note.
Following are today’s closing prices of the most-active spice contracts:
End
Edited by Tanima Banerjee
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Source: Cogencis
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