India Spices:Turmeric extends gains on bargain buying; cardamom down

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India Spices:Turmeric extends gains on bargain buying; cardamom down

Wednesday, Jan 8

 

By Kavita Desai

 

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contracts of spices on domestic exchanges ended on a mixed note today. On the National & Derivatives Exchange, contracts of coriander ended higher due to short covering after prices declined in the last four consecutive sessions, said analysts.

 

Lower acreage in Rajasthan and Madhya Pradesh, which are among the largest producers of coriander, also pushed prices higher.

 

Turmeric contract extended Tuesday’s gains and ended 1% higher due to bargain buying from investors, said analysts.

 

futures gained due to short covering after prices fell to a one-week low on Tuesday. However, in Gujarat’s Unjha, the benchmark , prices remained steady due to lack of strong demand.

 

Outlook for the spice remains bearish due to higher sowing in Gujarat, an Unjha-based trader Vimal Patel said.

 

Jeera acreage in the ongoing 2019-20 season (Oct-Sep) in Gujarat, the largest producing state, was at 471,287 ha as of Monday, compared with 345,443 ha a year ago, state farm department data showed.

 

On Multi Commodity Exchange of India, contracts of mentha oil ended lower due to weak demand, those of cardamom ended lower as market participants booked after the contract hit a five-month high of 4,185 rupees per kg recently, analysts said.

 

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

 

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

 

“Robust shipments to Bangladesh and Sri Lanka may push prices higher. However, rising supply of new crop may cap major upside,” 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 Apr

100

7,084 272

Jeera Mar

NCDEX

100

15,780 85

Turmeric Mar

NCDEX

100

6,476 30

Cardamom Feb

1

3,900 (-) 16.3

Mentha oil Jan

MCX

1

1,287 (-) 2

* on MCX, ICEX is in lots.

 

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

 

CONTRACT

SUPPORT

(rupees)

RESISTANCE

(rupees)

Coriander 

6,912 7,170

Jeera

15,700 15,820

Turmeric

6,382 6,570

Cardamom 

3,835.2 3,955

Mentha oil 

1,281.5 1,294.9

 

 

 

 

 

 

 

 

End

 

Edited by Mainak Moitra

 

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