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Informist, Tuesday, Nov. 26, 2024

By J. Navya Sruthi

MUMBAI – Futures contracts of turmeric fell for the second day on the National Commodity and Derivatives Exchange Tuesday as investors took out profits on recent gains, analysts said. Futures contracts of coriander were also in the red as investors similarly sold for profit. Futures contracts of jeera were steady with an upside bias due to lower acreage and firm demand, analysts said.

The most active December contract of TURMERIC fell 1.7% to INR 13,570 per 100 kg as investors sold for profit at higher levels, SMC Global's Ravi Shankar Pandey said. "We can see the profit booking continuing till INR 13,300 level," he said.

However, the downside was restricted by robust export demand and fear of a fall in production, analysts said. "Supply shortage at major trading centres and prevailing fear of crop damage in Maharashtra due to widespread crop disease are likely to support firmness in prices," according to SMC Global's report. 

In the near term, turmeric prices are seen in the range of INR 13,300-14,800 per 100 kg, Pandey said, adding that prices may even reach 16,000 in the long term on export demand.

The most active December contract of CORIANDER fell 2.5% to INR 7,828 per 100 kg as investors booked profits on recent gains and a slowdown in exports during September, according to SMC Global's report. The recent release of export numbers showed coriander exports dropped again in September to 337,000 tonnes against 403,000 tonnes in September 2023.

The major focus is on the progress of sowing of coriander and expectations of a fall in the area under cultivation of the crop, prompting buyers to build up "long positions on every dip in prices", the brokerage said. According to Gujarat's acreage report, coriander acreage fell to 15,955 hectares from 56,737 hectares a year ago. Gujarat is one of the top coriander-producing states of the country.

In the near term, coriander futures are seen in the range of INR 7,750-8,400 per 100 kg.

The most active December contract of JEERA was largely steady at INR 25,095 per 100 kg on renewed buying in the local market and a rise in export demand from China and Bangladesh, according to SMC Global Securities. Falling acreage in key producing state Gujarat also supported jeera prices.

The area sown with cumin in Gujarat fell sharply to 57,915 hectares from 244,639 hectares in the corresponding period last year, according to the state's acreage report. In the near term, jeera prices are seen in the range of INR 24,770-26,000 per 100 kg.

End

Edited by Rajeev Pai

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