Informist, Tuesday, Jan 30, 2024
By J Navya Sruthi
MUMBAI – Jeera prices rose on the National Commodity and Derivatives Exchange of India today due to increased demand ahead of the festive season, analysts said. Futures contracts of turmeric and coriander fell today on the NCDEX, due to increasing arrivals in spot markets, market participants said.
The most-active March contract of JEERA closed in the green today at 26,695 rupees per 100 kg, up 1.7% from the previous trading day. Increasing demand in the domestic and overseas markets ahead of the festive season supported the spice’s prices, Ravi Shankar Pandey, Senior Analyst at SMC Global said.
However, gains in the most expensive spice are limited because of subdued exports and higher acreage during the current rabi season, he said. Production for the year 2024-25 is likely to increase 30% on year, due to a substantial rise in the cultivation area, SMC Global said in a note.
Support for the March contract of jeera is seen at 23,450 rupees and resistance at 28,700 rupees for the week, said Anu V Pai, analyst at Geojit Financial Services. Spot prices of jeera in the benchmark market of Unjha, Gujarat, were unchanged from the previous day at 33,500 rupees per 100 kg, said Anuj Mittal, a local trader.
The most-active April contract of CORIANDER closed in the red at 7,688 rupees per 100 kg, down 0.5% from the previous close. The new crop season commencing in March and heavy stocks in the market weighed on coriander prices, Pandey of SMC Global said.
However, a weaker production outlook and emerging demand in the local market are likely to restrict losses in the spice, he said. “Downfall will be capped at 7,500-7,200 rupees,” Pandey said.
Support for the April contract of coriander is seen at 7,350 rupees and resistance is at 8,150 rupees for the week, Pai said. Spot prices in the key wholesale market of Ramganj Mandi in Rajasthan fell by 100 rupees to 7,300 rupees per 100 kg, said Satyanarayana Gupta, a local trader. Arrivals were pegged at 3,000 bags (1 bag = 40 kg), the same as the previous trading day, traders said. Gupta expects the prices to fall 400-500 rupees per 100 kg due to increasing arrivals.
The most-active April contract of TURMERIC closed lower at 14,900 rupees per 100 kg, down 1.1% from the previous close. Turmeric prices fell on the NCDEX as there was fresh selling in the market, Pandey of SMC Global said. Also, new crop arrivals in Nizamabad, a key market, weighed on the yellow spice’s prices, he added.
However, prospects of lower production restricted the downside in prices of the spice. There is an expectation of a 15-20% drop in production for the year 2024-25, SMC Global Securities said in a note.
The April turmeric contract will face resistance near 16,400 rupees and support at 14,000 rupees for the week, Pai said. Spot prices of polished turmeric were steady at 13,500 rupees per 100 kg in the benchmark market at Nizamabad in Telangana, said Sandeep Akula, a local trader. Arrivals were pegged lower by 2,000 bags from the previous day at 1,000 bags (1 bag = 60 kg), he said.
Following are today’s closing prices of the most-active spice contracts:
End
Edited by Vidhi Verma
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