MUMBAI (Commoditiescontrol) – Cumin seed and cardamom futures surged this week along with decent gain in coriander, while turmeric futures closed this week in negative territory weighed by slow demand.
Cumin seed Up 7.4% This Week
Cumin seed futures rose to eight months high this week on the National Commodity & Derivatives Exchange Ltd (NCDEX) backed by strong demand against prospects of lower crop. The benchmark May futures rose 7.4 percent this week to settle at Rs 17,040/100kg, biggest weekly gains since July 22, 2015.
Cumin seed crop in the country is estimated at 2.5 lakh tonnes or around 45 lakh bags (approx. 70kg each) due to adverse weather condition.
According to trade sources cumin production was around 2.75 lakh tonnes compared in 2015-16 and and 3.6 lakh tonnes in 2013-14.
Volume in May contract almost tripped 141%, while open interest was up by 1 percent suggesting that bull run may continue in the near term.
Resistance for May contract is placed at 17,525, while historical price of cumin seed (first continuous month) is at 18,930. Immediate support is seen at Rs 16,500 level.
Cardamom Records Weekly Gain Of 9.25%
Cardamom futures surged to 3-month high on Multi Commodity Exchange Ltd (MCX) supported by strong domestic demand amid concern over next crop.
Severe dry spell prevailing in the cardamom growing belt in Kerala's Idukki district, where over 75 per cent of the aromatic spice is grown, has affected the plants negatively with around 50 per cent of them drying up , trade sources in Kumily said.
The markets are seem to have accepted the fact that the next crop would not only be delayed but also could be lower, they said. This phenomenon has led to good demand and that in turn has pushed up the prices, of late, they said.
Rise in the average price said to have prompted the exporters to slow down their activities.
Cardamom May futures may face resistance at 843 than 885, while support is placed at 751.
Coriander futures 5.6% Up W/W
NCDEX coriander May futures recovered from previous week losses and managed to record gain of 5.6 percent this week to settled at 7,345/100kg. Coriander futures was down 5.8 percent last week on profit booking.
Sellers in the spot market reluctant to sell their stocks as coriander average price during last year was around 10,127/100kg on futures, while average prices during the current year was down by 33% at 6,778, which has prompted farmers and stockists to hold in the anticipation of better returns.
Coriander crop is though higher from last year due to favorable weather condition and increased acreage due to higher rates of coriander at the time sowing.
Demand in coriander is decent from upcountry and expected to remain strong as pipelines are empty in most consuming centers and attractive current rate, said a veteran trader from Ramganj.
However rising prices with drop in volume and open interest on May futures indicating weakness may take place ahead. Volume and open interest this week in May contract dropped 10.63% and 11.37%, while prices rose 5.6%.
Turmeric Turns Down This Week On Better Monsoon Forecast
NCDEX turmeric futures dropped this week by around 1% after trading higher for the last couple of straight week on profit booking and slow demand after India weather office forecast above normal monsoon.
Turmeric sowing in the country in the country usually starts after the commencement of monsoon and better monsoon forecast has raised prospect of increased acreage and importantly better yield.
Turmeric production in the country though dropped this year, but decent carry forward stocks from previous crop made the availability somewhat around demand. However next years carry forward may drop to lowest in recent years in case domestic and exports demand picks up.
Demand in turmeric is low at present, while prices were mainly weighed by higher availability of lower-medium quality of turmeric due to adverse weather and low rainfall in producing belts. Turmeric crop requires a lot of water for better quality, which was lacked this season amid below normal monsoon.
Turmeric (first continuous month) have strong support at 8,340-8,000 level, while resistance is at 8,850.
| Turmeric Balance Sheet 2016-17 |
| In Lakh Bags (75Kg) |
In Lakh Bags |
| Opening Stock |
20 |
| Production |
52 |
| Total Supply |
72 |
| Domestic Consumption |
60 |
| Exports |
8 |
| Total Consumption |
68 |
| Closing Stocks |
4 |
(By Commoditiescontrol Bureau; +91-22-40015533)
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