Informist, Wednesday, Sep 22, 2021
By Kavita Desai
MUMBAI – Futures contracts of jeera, turmeric, and coriander ended lower on domestic exchanges. Chilli prices at Guntur in Andhra Pradesh rose on a pick-up in export demand, market participants said.
* JEERA futures on the National Commodity and Derivatives Exchange closed over 1% lower due to lack of strong demand. Bulk buyers are avoiding major purchases, and demand is expected to gain pace after Diwali, said Vimal Patel, a local trader.
* "Rains in jeera-growing regions in Gujarat and Rajasthan raised hope of a good season ahead as the recent spell of rain could be beneficial for sowing in the coming rabi season," Patel said, adding that this has also kept prices under pressure. Gujarat is the top producer of jeera, followed by Rajasthan.
* CORIANDER futures closed lower tracking the spot market amid a rise in arrivals in the market, said Giriraj Gupta, a Ramganj-based trader.
* In Ramganj, a key trading centre, the badami variety was sold at 8,000 rupees per 100 kg and the eagle variety at 8,500 rupees, both down by 50-100 rupees from Tuesday. Arrivals in Ramganj were pegged at 4,000 bags (1 bag = 45 kg), compared with 3,000 bags the previous day.
* Currently, demand is normal and good rains in Gujarat and Rajasthan is expected to help rabi crop. This also weighed on prices, said SMC Global Securities, in a report.
* TURMERIC contracts closed lower on the back of weak demand and higher production estimate in the 2021-22 (Jul-Jun) season as the new crop is in good condition due to favourable weather.
* Turmeric production in Erode, a major producer, is projected at around 1.2 mln bags (1 bag = 65 kg) compared with 1.0 mln bags last year, said Ravishankar Vishwanath, a trader in Erode.
* CHILLI prices at the benchmark Guntur market in Andhra Pradesh rose slightly on the back of improving demand from overseas buyers. "There are good enquiries from Bangladesh and China, which supported prices," said Ashok Dattani, a trader in Mumbai.
* The Teja variety in Guntur was sold at 13,000-14,300 rupees per 100 kg and the LCA-334 variety at 9,000-11,100 rupees, both up by 100 rupees from Tuesday. Today, arrivals in Guntur were pegged at 75,000 bags (1 bag = 40 kg), compared with 80,000 bags on the previous day.
* Sowing under the spice in the ongoing season is so far good in most key producing states like Andhra Pradesh, Karnataka, and Madhya Pradesh, which raised hope of better production. This has capped the upside in prices.
* Chilli acreage in Andhra Pradesh, the largest producer, was at 104,507 ha as on Sep 15 in the 2021-22 (Jul-Jun) season, compared with 96,044 ha in the corresponding period last year, data from the state farm department showed.
* Following are the prices of the most active contracts of spices at 1700 IST:
| Contract | Exchange | Unit (kg) | Price (rupees) | Change (rupees) |
| Coriander Oct | NCDEX | 100 | 7,732 | (-) 32 |
| Jeera Oct | NCDEX | 100 | 14,190 | (-) 160 |
| Turmeric Oct | NCDEX | 100 | 7,274 | (-) 74 |
* Following are the expected support and resistance levels for contracts of spices for trade for Thursday:
CONTRACT | SUPPORT (rupees) | RESISTANCE (rupees) |
Coriander | 7,300 | 8,400 |
Jeera | 13,900 | 14,600 |
Turmeric | 7,000 | 7,600 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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