Informist, Friday, Jun 9, 2023
By Afra Abubacker
MUMBAI – Spices complex traded in the red today on the National Commodity and Derivatives Exchange. Jeera contracts ended down on profit booking, while coriander contracts hit an over two-year low on the domestic bourse due to rising supplies amid higher production in Rajasthan and Gujarat.
JEERA futures ended lower on the domestic bourse on profit booking. The most-active July contract was at 47,050 rupees per 100 kg, down 2% from the previous close. Earlier in the day, the contract hit the month high of 48,800 rupees. The July contract had hit a record high of 49,840 rupees per 100 kg hit in May.
Prices in the key wholesale market of Unjha, Gujarat, were 950 rupees higher at 48,300 rupees per 100 kg, traders said.
Though jeera futures dipped today, positive bias is prevailing in jeera due to firm demand and tight supplies at major markets, said analysts. Low carry-over stocks and lower production in Gujarat and Rajasthan due to a drop in acreage and yield are supporting jeera prices.
The commodity exchange had imposed an additional surveillance margin of 3%, which is over and above the currently applicable additional margin of 2% which was imposed on May 12. Accordingly, the additional margin shall be 5% on all running jeera contracts from Friday, the bourse said in a release on Wednesday.
The most-active July contract of CORIANDER was at 6,028 rupees per 100 kg, down 0.7% from the previous close. Earlier today, the contract hit an over two-year low of 5,952 rupees per 100 kg. Prices in the key wholesale market of Kota, Rajasthan, were largely steady at 6,400 rupees per 100 kg, traders said.
Subdued demand from stockists, who expect further fall in prices, also weighed on coriander prices. Demand from spice makers is tepid as they have mostly completed their bulk purchases, traders said.
Coriander prices are on a downtrend due to higher production in Gujarat and Rajasthan. Farmers had shifted to coriander cultivation last year due to 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 carried out from January to April.
Coriander contracts are likely to trade sideways to weak unless 6,240 rupees is breached convincingly on the upside, said Geojit Financial Services.
TURMERIC futures fell marginally on subdued demand amid increasing supplies at major markets. The most-active August contract was at 7,946 rupees per 100 kg, down 0.4% from the previous close.
However, the lack of premium quality turmeric and concerns over monsoon amid the forecasts 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 conditions are present, and are expected to gradually strengthen into the Northern Hemisphere in winter, the US-based National Oceanic and Atmospheric Administration said in an advisory released on Thursday.
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.
A voluminous rise above 8,080 rupees on the upside is likely to see a rise to 8,150-8,300 rupees, said Geojit Financial Services.
Following are today's closing prices of the most-active contracts of spices:
Contract | Exchange | Unit (kg) | Price (rupees) | Change (rupees) |
|---|---|---|---|---|
Coriander Jul | NCDEX | 100 | 6,028 | (-)42 |
Jeera Jul | NCDEX | 100 | 47,050 | (-)930 |
Turmeric Aug | NCDEX | 100 | 7,946 | (-)32 |
End
Edited by Maheswaran Parameswaran
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
