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Informist, Thursday, Nov. 28, 2024

By J. Navya Sruthi

MUMBAI – Futures contracts of jeera rose Thursday on the National Commodity and Derivatives Exchange amid rising wedding season demand and lower sowing activities in key producing states, analysts said. Futures contracts of turmeric and coriander ended lower Thursday.  

The most active December contract of JEERA ended 0.2% higher from the previous close at INR 24,935 per 100 kg due to rising wedding season demand amid delayed sowing activities in Gujarat in the wake of adverse weather conditions, analysts said. Also, a rise in export demand from China and Bangladesh aided jeera prices, according to SMC Global Securities. 

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.

The most active December contract of TURMERIC fell 1.2% to INR 13,352 per 100 kg due to panic selling in the market, according to SMC Global's report. The panic selling was largely on account of influx of heavy crop in the market by January. "Muted buying in local market and weakness in spot prices at major trading centres weighed on market sentiments. Heavy crop expectation kept prices under pressure," the firm said.

However, weakness in turmeric prices is likely to be limited as prices may bounce back soon due to a rise in seasonal demand, analysts said. 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 INR 16,000 per 100 kg in the long term on export demand.

The most active December contract of CORIANDER fell 1.3% to INR 7,630 per 100 kg as investors booked profits on recent gains and a slowdown in exports during September, according to SMC Global's report. "Ongoing geopolitical conflict in (the) Black Sea region will impact global supply of dhaniya (coriander) adversely. Russia and Ukraine both together contribute about 18% of global coriander export," 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 the year-ago period.

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 in the country.

In the near term, coriander futures are seen in the range of INR 7,300-8,400 per 100 kg.

End

Edited by Akul Nishant Akhoury

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