India Spices: Down; jeera near 2-yr low on prospects of bumper crop

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India Spices: Down; near 2-yr low on prospects of bumper crop

Monday, Jan 20

 

By Kavita Desai

 

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MUMBAI – Futures contracts of all the spices ended lower on the domestic exchanges today. Jeera slipped below 15,000 rupees per 100 kg on the National Commodity & Derivatives Exchange due to prospects of a bumper crop in the current 2019-20 (Oct-Sep) season.

 

The most active March contract of jeera hit a near two-year low of 14,870 rupees early in . “Sharp increase in acreage in Gujarat and Rajasthan and favourable weather conditions across the growing regions may lead to rise in yield,” said Vimal Patel, an Unjha-based trader.

 

Turmeric futures hit the 2% lower circuit due to sluggish demand from local and overseas buyers and on of a higher crop. “Arrivals of fresh crop have started to hit key spot of Nizamabad, Telangana and are likely to gain momentum in the coming weeks, which will further weigh on turmeric ,” said Jitendra Nagla, a local trader.

 

Coriander contracts fell for the third straight day because of weak demand from local stockists and better prospects for the crop, said Giriraj Gupta, a Ramganj-based trader.

 

“Despite lower acreage in Rajasthan and Madhya Pradesh, production of coriander in 2019-20 (Oct-Sep) is projected to be higher due to favourable weather conditions,” said Gupta.

 

Mentha futures ended lower on the Multi Commodity Exchange of India due to profit booking. Seasonal demand from domestic stockists and fall in inventories at exchange accredited warehouses limited the downside, said analysts.

 

The most-active February contract of cardamom ended higher due to lower arrivals, said.

 

Prices of chilli fell in Guntur, the benchmark market, as arrivals of the new crop rose sharply after Makar Sankranti, the harvest season, said Jugraj Bhandari, a local trader.

 

The Teja variety was sold at 14,000-17,500 rupees per 100 kg, and the LCA-334 variety at 14,000-17,000 rupees, both down 1,500 rupees from the previous trading day. Arrivals in Guntur were pegged at 100,000 bags (1 bag = 40 kg), as against 80,000 bags on Friday.

 

“Chilli prices may continue to as arrivals of the fresh crop will gain momentum in the coming weeks,” said Bhandari.

 

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

NCDEX

100

6,945 (-) 6

Jeera Mar

NCDEX

100

14,910 (-) 190

Turmeric Mar

NCDEX

100

6,160 (-) 138

Cardamom Feb

1

3,972 (-) 129.4

Mentha oil Jan

MCX

1

1,253.5 (-) 10.6

* Open interest on MCX, ICEX is in lots.

 

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

 

CONTRACT

SUPPORT

(rupees)

RESISTANCE

(rupees)

Coriander 

6,854 7,012

Jeera

14,835 15,020

Turmeric

6,157 6,365

Cardamom 

3,913 4,055.6

Mentha oil 

1,245.9 1,266

 

 

 

 

 

 

 

End

 

Edited by Ashish Shirke

 

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