Weekly: Spot Coriander Eases On Bearish Fundamentals; But Downside Limited

MUMBAI (Commoditiescontrol) - Subdued demand, higher imports and ample stocks with farmers tolled on Coriander prices at the benchmark Kota market during week ended Monday. Further weak futures market also weighed on spot market.



Coriander prices remained under presssure so far this season due to higher production and cheaper imports from Russia, Bulgaria and Ukraine.

Demand for Coriander in the spot market is very poor mainly due to bearish tone on prices despite of ongoing festival season. Buyers are reluctant to make procurement in bulk quantity due to falling prices in the spot as well as on futures.

Supply of Coriander at the key Kota market seen improving mainly due to increased selling by farmers and stockists due to bearish tone. Farmers and stockists are now liquidating their stocks in order to avoid any further losses in the commodity.

Coriander imports during April-June 2017 rose 31.04% to 11,105.07 metric tonnes against 8,474.40 metric tonnes same period a year ago. At the same time, Coriander export from the country during April-June 2017 dropped 7.86% to 6,971.81 metric tonnes from 7,566.16 metric tonnes previous year.

The higher import was mainly due to availability of Coriander in the internatitnal market at very competitive rates, however domestic prices after recent correction has turned attractive may curb imports.

Coriander stocks in the country is estimated around 65-70 lakh tonnes, out of which 30 lakh bags (30kg each) is expected to consumed until new Coriander season from February. The carry over stocks for new season 2018-19 (Feb-Jan) is expected to be around 40 lakh bags, said Mukesh Bhatia, Managing Director, Vyapar Doot Trade Link, based in Kota.

He said "Coriander may trade steady around current level until level and further course of trend will be heavily depend on sowing progress."

On derivatives, Coriander October delivery futures declined nearly 2% to close at Rs 4,756 on the National Commodity & Derivatives Exchange Ltd (NCDEX) due to weak advices from spot market. Volume and Open interest were on the lower side during the week with subdued tone on prices indicating bearish tone ahead.



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(By Commoditiescontrol Bureau; +91-22-40015533)