Informist, Monday, Jun 12, 2023
By Afra Abubacker
MUMBAI – Futures contracts of jeera rose today on the National Commodity and Derivatives Exchange due to tight supplies in major markets and renewed buying as investors rolled over their position to the July contract. Coriander and turmeric contracts fell on the domestic bourse due to increased supplies.
The most-active July contract of JEERA closed at one month high of 49,030 rupees per 100 kg, up 4% from the previous close. The open interest in the contract was higher by 774 tn at 8,424 tn. Jeera prices rose due to renewed buying as investors rolled over their position to the July contract since the current month contract is nearing expiry, said Ravi Shankar Pandey, senior analyst with SMC Global Securities.
Low carry-over stocks and lower production in Gujarat and Rajasthan due to a fall in acreage and yield are supporting jeera prices. Resistance for July contract for the week is seen at 52,700 rupees per 100 kg and support is seen at 46,500 rupees, Pandey said.
TURMERIC futures fell on the domestic bourse due to subdued domestic and export demand amid increasing supplies at major markets. The most-active August contract was at 7,850 rupees per 100 kg, down 1.3% from the previous close.
Millers and exporters are avoiding bulk buying due to the increased arrivals of rain-damaged produce, said SMC Global Securities. However, concerns over upcoming crop amid the forecast of El Nino conditions are likely to cushion the fall in prices. Turmeric is a nine-month crop that is sown during Apr-Jul and harvested from February.
El Nino is typically associated with lower rains in India. However, according to India Meteorological Department, not all El Nino years have seen below-normal rainfall over the country.
The most-active July contract of CORIANDER was at 6,018 rupees per 100 kg, down 0.3% from the previous close. Coriander contracts fell marginally due to tepid demand amid increased supplies at major markets.
Coriander prices are on a downtrend due to higher production in Gujarat and Rajasthan. Farmers had shifted to coriander cultivation last year because of favourable weather and lucrative returns. Last April, coriander prices hit a
seven-year high of 13,000 rupees per 100 kg. Coriander is a rabi crop that is sown from October to December. The crop takes three months to mature and harvesting is done from January to April.
Following are today’s closing prices of the most-active contracts of spices:
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Edited by Vandana Hingorani
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