Informist, Thursday, Apr 28, 2022
By Kavita Desai
MUMBAI – Futures contracts of most spices on domestic exchanges closed lower today. Prices of chilli remained steady in the benchmark market of Guntur in Andhra Pradesh, market participants said.
* TURMERIC futures on the National Commodity and Derivatives Exchange declined nearly 2% due to pressure of arrivals in key trading centres and sluggish demand from bulk buyers, said Vikas Nagla, a trader in Nizamabad, Telangana.
* Overseas demand is also weak, but is expected to pick up post Ramzan, said Nagla.
* JEERA futures ended lower due to higher arrivals in the benchmark market of Unjha, Gujarat. Arrivals in Unjha were pegged at 15,000 bags (1 bag = 55 kg), compared with 12,000 bags the previous day.
* However, the outlook remains firm as tight supply, caused by a drop in production in the ongoing 2021-22 (Jul-Jun) season, may support prices in the long run.
* Traders expect jeera production in the ongoing season at 5.0-6.0 mln bags (1 bag = 55 kg), down from 8.0-8.5 mln bags the previous year. The lower estimate is mainly attributed to a sharp fall in acreage in Gujarat and Rajasthan and heavy post-monsoon rainfall in November, which affected the yield and quality of the crop.
* CORIANDER contracts on domestic bourse declined due to a slowdown in demand from local stockists, said Giriraj Gupta, a Ramganj-based trader.
* Prices of CHILLI in the benchmark market of Guntur remained steady today. The Teja variety was sold at 18,500 rupees per 100 kg and the LCA-334 variety at 19,000 rupees. Arrivals were pegged at 65,000 bags (1 bag = 40 kg), compared with 75,000 bags the previous day.
* Export demand for the spice is currently weak due to lack of superior quality spice. Most of the arrivals are of medium quality, said Ashok Jain, the owner of Guntur-based Ankur Enterprises.
* Torrential rains in Andhra Pradesh, Telangana and Karnataka in November damaged the standing crop, leading to lower yield. The quality of the crop has also been hit by pest attacks.
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 Friday:
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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