Informist, Thursday, Jan 11, 2024
By Romeo M. Raj
MUMBAI – Jeera futures on the National Commodity and Derivatives Exchange gained on short covering by market participants, though the trend remains downwards on increased sowing and weak export demand, analysts said. Futures contracts of turmeric and coriander fell.
The most active March contract of JEERA closed in the green at 26,640 rupees per 100 kg, up 0.2% from the previous day, after dropping for four consecutive sessions. On Wednesday, the March jeera contract plunged to its lowest point in more than a year at 26,100 rupees.
Short covering is expected to continue in the jeera contract, which may lead to some gain in prices, but the dominant trend remains downwards, SMC Global Securities said in its daily report. The outlook remains bleak on account of increased acreage in Gujarat and Rajasthan and poor export demand, said Amit Gupta, research associate at Kedia Advisory, in a note.
Support for the March contract of jeera is seen at 22,800 rupees and resistance is at 37,400 rupees for this week, Ravi Shankar Pandey, senior analyst at SMC Global, said.
In the benchmark market of Unjha, Gujarat, spot prices of jeera were unchanged at 32,000 rupees per 100 kg, from the previous trading day, said Arihant Jain, a local trader.
The most active April contract of TURMERIC closed lower again at 13,068 rupees per 100 kg, down 1% from the previous close. The contract touched an almost-three-week low of 12,840 rupees on Tuesday.
Subdued demand as the new crop is expected to arrive in the market by next week is keeping prices down, said Gupta of Kedia Advisory.
Export demand for the yellow spice continues to be gloomy, adding to concern about the spice, SMC Global said.
The April turmeric contract will face resistance near 14,500 rupees. Support is pegged at 12,700 rupees for the week, Pandey of SMC Global said.
The benchmark market at Nizamabad in Telangana was closed today on account of Amavasya, said Vikas Nagla, a local trader.
The most active April contract of CORIANDER closed lower at 7,740 rupees per 100 kg, down 0.5% from the previous close.
Coriander prices dipped on decreasing demand as the new crop is expected in March, analysts said. “Higher ending stocks and sluggish buying by millers and stockists weighed on market sentiment,” SMC Global said.
Losses will be limited as reports from Gujarat and Rajasthan, key producers, show that acreage is low, SMC Global said. Export demand also remains sturdy.
Support for the April contract of coriander is seen at 7,340 rupees and resistance is at 8,300 rupees for this week, Pandey of SMC Global said.
Spot prices in the key wholesale market of Ramganj Mandi in Rajasthan were steady at 7,400-7,600 rupees per 100 kg, from the previous trading day, local traders said. Prices were unmoved as the market was subdued and there wasn’t much movement, said Satyanarayan Gupta, a local trader.
Following are today’s closing prices of the most-active spice contracts:
End
Edited by Rajeev Pai
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