Informist, Friday, Jan 7, 2022
By Rahul Dhuri
MUMBAI – Futures contracts of spices ended mixed on the domestic exchanges today. Prices of chilli in Guntur remained steady, market participants said.
* The most-active April contract of CORIANDER on the National Commodity and Derivatives Exchange hit a six-year high of 10,276 rupees per 100 kg for the second consecutive day because of expectations of decline in output in 2021-22 (Jul-Jun), analysts said.
* Output is seen lower because of drop in acreage in key growing states as farmers have shifted to other crops.
* “Demand for the commodity increased because of fear among bulk buyers about crop loss of 5-10%,” said Ramganj-based trader Satyanarayan Gupta.
* The most active March futures contract of JEERA hit a two-and-a-half year high of 18,145 rupees per 100 kg, tracking the spot market of Unjha, where prices rose due to a lower production estimate for 2021-22 (Jul-Jun) season, said a senior analyst at SMC Global Securities.
* Jeera output in Gujarat, the top producer, is estimated at 236,980 tn in 2021-22, against 399,390 tn a year ago, according to the state farm department’s second advance estimate.
* TURMERIC contracts on the domestic bourse ended in the red due to sluggish domestic and export demand. Demand from bulk buyers remained weak due to poor quality of the new crop, said Punamchand Gupta, a trader in Nizamabad.
* Prices of CHILLI remained steady for the fourth straight day in Guntur, Andhra Pradesh, said Ashok Dattani, a Mumbai-based trader. However, outlook for the spice is weak as an increase in supply of the new crop is likely to dampen market sentiment.
* The new crop of Teja variety in Guntur was quoted at 14,000-16,000 rupees per 100 kg, while the price of LCA-334 variety from cold storages was 15,000-16,500 rupees per 100 kg. Arrivals were pegged at 90,000 bags (1 bag = 40 kg), compared with 115,000 bags the previous day. Of the total quantity, around 40,000 bags were from the new crop.
* Demand for the new crop is now weak due to poor quality arrivals. Buyers are waiting for arrivals of better quality crop, said Dattani.
Following are the prices of the most-active contracts of spices as of 1700 IST:
* Following are the expected support and resistance levels for contracts of spices for trade on Monday:
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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