Spices Round Up: July 25, 2016
•Jeera futures traded higher tracking the trend in major spot markets. The most active August contract after hitting a high of 19,930 rupees ended at 19,810 rupees per 100 kg, up 3.18% from previous close.
•In Unjha, exchange deliverable quality jeera was sold in the range of 19,900-20,000 rupees per 100 kg, higher than the previous day. Arrivals were unchanged at 5,000 bags (1 bag = 55 kg).
•Total stocks of jeera in NCDEX warehouse as of 22nd July 2016 stood at 4958 tonnes and 780 tonnes are in process, higher from previous day.
Outlook: The positive trend in jeera may continue owing to a supply crunch and forecast of strong exports in 2016-17. From around daily arrivals of 55,000 bags at the beginning of the season in March 2016, arrivals have declined to 3,000-5,000 bags and are likely to keep dwindling as most farmers have already offloaded their stocks, unless some stockist have held some. Conversely, total stocks of jeera in the NCDEX accredited warehouse as of 22nd July 2016 increased from 3427 tonnes one month ago and from 3438 tonnes from three month ago period. PVO Analysis confirms buying trend. Still, expect profit booking at higher levels.
•Turmeric contracts ended down on expectations of higher acreage compared with last year. Weak sentiments in major spot markets too weighed down the price trend.
•At Erode market, turmeric finger variety traded at Rs. 8900-9200 per 100kg, steady as against previous close. Arrivals were reported at 2500 quintals, down from previous day. The gattah variety fetched Rs.8500-8700 per quintal and the salem grade Rs. 9200- 9500 per quintal.
•At Nizamabad market, the nizamabad variety was sold at Rs. 8500 per quintal. Arrivals reported at 1000 quintals. The finger double polished was offered at Rs. 9400 per quintal.
Outlook:Turmeric prices are likely to be firm because of good demand from domestic and overseas markets. However, expectations of higher acreage in major turmeric producing regions may limit sharp rise in prices. The area under turmeric in Andhra Pradesh as of 20th July 2016 stood higher at 6,079 hectares against 4,942 hectares same period a year ago. Meanwhile, sowing in Telangana showed a slow pace and reported as 30,068 hectares as against 31,279 hectares same period a year ago, data from the state agriculture department showed. PVO Analysis indicates decreased selling interest by the market participants.
•Coriander futures traded higher despite weak trend in major spot markets. The prices fell in spot markets due to low demand from bulk buyers.
•At Baran market , the price for seed eagle finished weak at Rs. 7100-7200 per quintal. The badami seed ended weak at Rs. 6800- 6900 per quintal. Arrivals reported at 1500 quintals, up by 300 quintals from previous trading day.
•At Kota market , the seed eagle traded at Rs. 7000 per quintal and the seed badami offered at Rs. 6700 per quintal, steady against previous close. Arrivals were reported at 20000 quintals, up 10000 quintals from previous day.
•Coriander seed eagle at Ramganj quoted at Rs. 6350 per quintal. And the seed badami offered at Rs. 6300 per quintal, unchanged as compared to previous close. Arrivals were 10000 quintals.
•Stocks of coriander in NCDEX warehouses as on 22nd July 2016 declined from previous day to 4346 tonnes and 101 tonnes are in process.
Outlook: Coriander prices are seen weak as demand from bulk buyers slowed down due to better arrivals. Meanwhile, prospects of rise in demand from overseas markets may limit sharp fall in prices. PVO Analysis indicates reduced buying interest by market participants.
•Cardamom futures traded higher on lower production estimates. The August contract ended at 943.5 rupees per kg, up 1.86% from the previous close.
•On Saturday, total arrivals of small cardamom in major auction centre were around 56 tonnes with the spot price on an average quoted as 784 rupees per kg. The maximum price was 1099 rupees per kg.
•Cardamom stock at MCX accredited warehouses as of 20th July 2016 stood unchanged from previous day at 13.9 tonnes, data from the exchange showed.
•India’s total small cardamom exports in 2015-16 (Apr-Mar) increased sharply by 45% to 5,500 tonnes, against 3,795 tonnes a year ago, according to the data from Spices Board India. The exports are higher than the board’s target of 3,500 tonnes for 2015- 16.
Outlook: Cardamom prices gained on reports of delay in crop harvest and projected rise in demand from overseas markets. Lower production estimates too supported the prices. Absence of summer showers have destroyed the plants which were in the flowering stage at that point of time. However, PVO Analysis signals reduced buying interest by the market participants.