India Spices:Mixed; coriander down as area up in Gujarat, demand weak

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India Spices:Mixed; coriander down as area up in Gujarat, demand weak

Tuesday, Jan 7

 

By Kavita Desai

 

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– Futures contracts of spices on domestic exchanges closed on a mixed note today. On the National Commodity & Exchange, contracts of coriander ended lower for the fourth consecutive session due to higher acreage in Gujarat and cues from spot markets.

 

Coriander acreage in Gujarat, the second-largest producing state, was at 82,105 ha as of Monday, compared with 29,630 ha a year ago, state farm department data showed.

 

In the key spot market of Ramganj in Rajasthan, the price of the badami variety of coriander was at 7,300 rupees per 100 kg, while the finger variety was sold at 7,800 rupees, both down 100 rupees.

 

Jeera futures traded lower, tracking spot markets where prices fell due to weak demand and a rise in acreage in Gujarat and Rajasthan, said Vimal Patel, an Unjha-based trader.

 

“Due to favourable weather conditions, there has been an increase in the area under cultivation. Market experts see better yields in the current season and project higher production,” said Ajay Kedia, head of Kedia Capital.

 

futures closed 3% higher today due to short covering. However, sufficient supply and of a bigger crop this year capped the upside, analysts said.

 

On the Multi Commodity Exchange of India, contracts of mentha oil ended higher as inventories at exchange-accredited warehouses fell on Monday, traders said.

 

Mentha oil at -accredited warehouses were at 166.43 tn as of Monday, down 25.93 tn from a week ago, bourse data showed.

 

Cardamom futures hit the 4% lower circuit as market participants booked profits after the contract hit a five-month high of 4,185 rupees per kg on Monday, analysts said.

 

The for the spice, however, is positive because of a supply crunch and strong demand, said Saseendra Babu, managing director of the Vandanmedu-based Green Gold Cardamom Producer Co Ltd.

 

Prices of chilli in Guntur, Andhra Pradesh, were steady today. The Teja variety was sold at 19,000-20,800 rupees per 100 kg, while the LCA-334 variety was quoted at 17,500-19,200 rupees.

 

“Chilli prices are seen higher in the coming week due to strong demand from domestic and overseas buyers. Robust shipments to Bangladesh and may push chilli prices higher,” said Ashok Dattani, a Mumbai-based trader.

 

Following are the prices of the most active contracts of spices, at 1700 IST, compared with the levels in the previous session:

 

Contract

Exchange

Unit

(kg)

Price

(rupees)

Change (rupees)

Coriander Jan

NCDEX

100

6,220 (-) 185

Jeera Jan

NCDEX

100

16,040 (-) 85

Turmeric Mar

NCDEX

100

6,468 192

Cardamom Feb

MCX

1

3,916.3 (-) 163.1

Mentha oil Jan

MCX

1

1,289.6 3.5

* Open interest on MCX, ICEX is in lots.

 

Following are the expected support and levels for contracts of spices for trade on Wednesday:

 

CONTRACT

SUPPORT

(rupees)

RESISTANCE

(rupees)

Coriander 

6,165 6,322

Jeera

15,940 16,140

Turmeric

6,276 6,564

Cardamom 

3,869.6 3,911.1

Mentha oil 

1,279.8 1,296.3

 

 

 

 

 

 

 

 

End

 

Edited by Avishek Dutta

 

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