India Spices:Most down; mentha oil up on short covering, margin levy

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India Spices:Most down; mentha oil up on short covering, margin levy

Thursday, Mar 26

 

By Kavita Desai

 

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MUMBAI – Futures contracts of all spices barring mentha oil ended lower on domestic exchanges today.

 

Contracts of jeera, coriander, turmeric ended lower due to booking, analysts said. Till Wednesday, these futures had gained due to a crunch after states decided to suspend trading at wholesale spices  as part of a nationwide lockdown.

 

Today, however, forecast of bigger crops in the current season weighed on futures of all the three , analysts said. 

 

According to a survey by the Federation of Indian Spice Stakeholders, production of jeera may rise 29% to 535,500 tn in 2019-20 (Oct-Sep) because of higher acreage in Rajasthan and Gujarat, the two largest producers.

 

Traders see turmeric output rising to a three-year high of 585,000 tn in 2019-20 (Jul-Jun) from 552,500 tn the previous year.

 

Mentha oil contracts on the Multi Commodity Exchange of India closed higher due to short covering after the imposition of an additional margin. The bourse has imposed a 5% event-based additional surveillance margin on all running and yet to be launched contracts of mentha oil from today.

 

On Wednesday, the April mentha oil contract hit a day’s low of 1,035 rupees, the lowest since July 2017.

 

The April cardamom contract hit an 11-month low of 1,911.90 rupees per kg today due to weak from domestic and foreign buyers, traders said.

 

of a bigger crop in the coming season and suspension of auction of small cardamom in South India also weighed on prices.  There is no movement of exports to West Asia, including Iran, due to the quarantine period, while movement of vehicles between Tamil Nadu and Kerala has also been affected, traders said.

 

Prices of chilli were unavailable as the spot  in Guntur, Andhra Pradesh, was shut. The state government decided to suspend trading at the wholesale  as part of the lockdown.

 

Khammam, another major trading centre for chilli, in Telangana, is also shut.

 

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

 

Contract

Exchange

Unit

(kg)

Price

(rupees)

Change (rupees)

Coriander Apr

100

6,100 (-) 133

Jeera Apr

NCDEX

100

14,100 (-) 450

Turmeric Apr

NCDEX

100

5,808 (-) 42

Cardamom Apr

MCX

1

1,911.9 (-) 59.1

Mentha oil Apr

MCX

1

1,085 25.6

 

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

 

CONTRACT

SUPPORT

(rupees)

RESISTANCE

(rupees)

Coriander 

6,000 6,294

Jeera

14,000 14,500

Turmeric

5,711 5,919

Cardamom 

1,900 1,950

Mentha oil 

1,020 1,090

 

 

 

 

 

 

 

 

End

 

Edited by Avishek Dutta

 

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