MUMBAI (Commoditiescontrol) – Bearish trend witnessed in spices complex as the prices of the top 5 spices was recorded lower during the week ended on 05th January 2018.
Rates in Rs/100kg:
Commodity
|
Market
|
Last Close
|
1 Week
|
1 Month
|
3 Month
|
6 Month
|
1 Year
|
Black Pepper
|
Kochi
|
46400
|
-2%
|
13.73%
|
3.80%
|
-9.20%
|
-32.66%
|
Coriander
|
Kota
|
5486
|
-1.49%
|
0.81%
|
19.73%
|
6.90%
|
-25.83%
|
Jeera
|
Unjha
|
20754
|
-1.55%
|
-1.20%
|
9.76%
|
10.65%
|
13.43%
|
Turmeric
|
Nizamabad
|
7675
|
-2.23%
|
-0.03%
|
4.27%
|
21.02%
|
3.02%
|
Red Chilli
|
Guntur
|
8800
|
-3.30%
|
-10%
|
6.02%
|
17.33%
|
-28%
|
BLACK PEPPER:
Declining trend continued to persist in the pepper markets during the week ended on Friday as the country's consuming markets are catered to by imported pepper and exchange released pepper.
The sellers were asking for buyers' quotes as they anticipate further fall in prices when the new crop arrivals picked up, trade sources said.
Reports that Vietnam pepper is available in good volumes at very low prices in UP and Bihar markets and rumours that Indian production is going to be 80,000 tonnes this season have pushed the spot prices down.
Though the trade in Bihar and UP were claiming that Nepal bound pepper was being diverted to their markets, some in the trade here suspected that it was that Vietnam pepper imported into Karnataka allegedly under misdeclaration mid-last year was being moved out through organized transporters before the harvesting starts in Karnataka, trade sources claimed.
Executives of some MNCs reported to have come out with their exorbitantly high projections and related forecasts that the prices would fall to around RS.250 a kg in the coming days.
Coriander:
Coriander ended with a bearish tone at the benchmark Kota market as the prices declined by 1.49% at Rs.5, 486/100kg during the week ended on Friday.
Coriander prices have marginally improved as compared with prices a month ago as the stockiest turned active to procure owing to lower sowing report.
Though the prices did not sustained and ended lower this week as the demand turned sidelined.
Domestic and export demand at present is hand to mouth as market participants are avoiding any bulk deals due to weak fundamentals.
As per a trader from Baran, ample stock is available at the major producing belts i.e MP, Rajasthan and Gujarat due to robust output in 2016-17.
Coriander sowing has completed in the MP, Rajasthan and Gujarat and the area sown under spice is recorded lower at 2,59,228 ha against 4,25,166 ha in last year.
Coriander sowing declined this year as farmers switched to different commodities like Jeera, Chana, etc for better returns.
Coriander prices are likely to remain pressurized in coming months due to higher carryover stock this year though prices can rise once the old stock gets liquidate, said a trader from Gondal.
Coriander futures contract expiry in January plunged by 3.91% at Rs.5, 279/100kg on the National Commodity and Derivative Exchange Limited.
Open interest of the same contract recorded lower at 22,400 lots versus 32,300 lots a week ago.
As per market sources, market participants were engaged in trimming their positions tracking bearish trend from major spot markets and weak fundamentals.
JEERA:
Spot Jeera prices weakened by 1.55% at the benchmark Unjha market of Gujarat during the week ended on Friday amid lack of buying support from domestic and export buyers, said market sources.
Earlier prices gained on sustained buying interest from local stockiests amid ideas that export demand would increase in near term, ready supplies are very thin as well.
Traders are keeping an eye on the fact that globally, India is the only active major supplier of the commodity right now due to lower production in rival countries, said market sources.
However, rising acreage under the commodity in Gujarat can cap the upside. The spot prices are currently trading at Rs 20700 per quintal, down marginally on the day. Jeera supplies in Unjha stood around 4000 bags today.
Further, sowing has completed and higher sowing reports from major producing belts have also weighed on prices this week.
The above spike in prices has led farmers in Gujarat to plant 3.48 lakh hectares lakh hectares against 2.79 lakh ha during last year under jeera in the current sowing season, which extends from November to early December, as per Gujarat Agriculture Department.
All the major growing districts have recorded higher coverage: Patan (from 40,700 to 68,100 hectares), Banaskantha (from 64,900 to 67,800 hectares) and Ahmedabad (from 12,400 to 19,800 hectares) in north/central Gujarat; Porbandar (from 12,100 to 23,200 hectares), Rajkot (from 4,900 to 22,000 hectares) and Devbhumi Dwarka (from 4,800 to 20,400 hectares) in Saurashtra; and Kutch (from 23,200 to 29,600 hectares).
Jeera futures contract expiry in January slipped by 2.93% at Rs.21,015/100kg on the National Commodity and Derivative Exchange Limited.
Open interest for the same contract was recorded at 10,242 lots against 12,519 lots a week ago.
Jeera prices are likely to trade in current price range though prices can rise in coming season despite of higher sowing reports as the supplies are expected to remain tight due to lower carry over stock.
TURMERIC:
Turmeric was the second loser under spices complex during the week ended on Friday amid thin business activities.
Demand for Turmeric at the moment is hand to mouth as the market participants have turned sidelined as the further trend depends once the harvesting starts and the exact production figures comes out, said market sources.
At present, market sentiments are weak in major physical market due to sufficient stock availability and supplies by AP Markfed through E-Auctions.
Turmeric export from Apr-Sep 2017 stood at 59,000 metric tonnes same as compared with last year export, as per Commerce ministry data.
As per market sources, Turmeric prices are expected to trade in current price range due to sufficient availability of stock in the physical market.
Current Turmeric stock all over India is pegged around 23-25 lakh bags (70kg each) the breakdown is as follows: Telangana- 3.5 lakh bags, Andhra Pradesh- 8.5 lakh bags, Tamil Nadu- 6.5 lakh bags, Maharashta- 4 lakh bags & other- 2 lakh bags.
Further, crop in the producing belts of Andhra Pradesh, Telangana, Nanded and Basmatnagar area is reported to get affected by virus/pest attack which will affect the outcome by 10-20%.
Turmeric April month contract on the NCDEX declined by 3.85% at Rs.7, 540/100kg on the NCDEX.
RED CHILLI:
Red Chilli Teja variety prices plunged by 3.30% at the benchmark Guntur market amid subdued export demand followed by lower availability of premium quality stock in the cold storages.
Even the demand for other varieties was more or less stable as the buyers have turned sidelined and are buying only as per their urgent requirement, said market sources.
Red Chilli production output is estimated around 3.5 to 3.75 crore bags versus 4.25 to 4.5 crore bags as the farmers lost their interest in commodity due to lower prices this year, as per Mumbai based trader.
Lower production this year is not only attributed by the lower sowing report but also by the virus attack on the crop in producing belts of Madhya Pradesh, he added.
Red Chilli prices are expected to trade in current prices range despite of lower production prospects due to higher carry over stock this year, said a trader.
Further, arrivals of new crop have started in thin quantity and were traded lower as compared with prevailing prices due to higher moisture content, he added.
(By Commoditiescontrol Bureau; +91-22-40015522)