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Monthly Report On
SPICESMARCH 2019FEBRUARY 2021
2ndFebruary,2021
• The recent rains in Telangana, Maharashtra, Karnataka in turmeric growing regions are said to hurt the overall productivity of
Turmeric due to standing water and higher moisture.
• Traders reveal due to climatic adversities and poor quality, turmeric growers are looking at lower yields.
• In days to come, the uptrend in turmeric futures is expected to remain intact and any dip around 6200, can be taken as an
opportunity, eyeing a target of 7000.
• Spot turmeric prices have been gaining week after week, extending the northward rally across major turmeric mandis in the
country.
• Area under turmeric cultivation was expected to go up, but that did not happen, and prices are firming up on the back of strong
domestic and export demand.
• Turmeric consumption had surged as people resorted to it an immunity booster against Covid-19.
Fundamental factors:
• Stockists are getting active and have started purchasing actively due to factors like decreasing sowing area and increasing
demand.
WeeklyPricemovementofTurmericFutures
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TURMERIC
Source:Reuters&SMCResearch
Ÿ Stockiest actively buying
Ÿ Higher demand, acting as an immunity booster
Ÿ Crop damage reports
Ÿ Prospects of lower output
Ÿ Lower yields
Factors to watch
PriceRange:6200-7000(Rs./Quintal)
Heatmap&SeasonaltableofTurmericfuturesWeeklySpotPriceChart
• Spot jeera prices are on a multi-months low
• Rough variety of Jeera was quoted at Rs. 2,070-2,140 per 20 kg. NCDEX Jeera was priced at Rs. 2,190-2,290 per 20 kg. Bombay
Bold was quoted at Rs. 2,465-2555 per 20 kg and Best quality was quoted at Rs 2,390-2,440.
• The weather conditions remain supportive and traders are keeping out of buying large quantities in wholesale markets ahead of
new arrivals from next month.
• The importing countries and exporters of cumin are waiting for fresh arrivals.
• Meanwhile, the inventories of old cumin seeds are currently very high in the state of Rajasthan.
• The arrival of cumin is still very good in the main mandi, Jodhpur, Nagaur and Merta.
Fundamental factors:
• In days to come, the uptrend in jeera futures is expected to trade with a downside bias in the range of 13700-12000.
• The final figures of progressive area under cumin of Rabi 2020-21 in Gujarat as on 25th Jan is reported at 4,69,030 hectares as
compared to 4,88,207 hectares during 2019-20 and 4,06,141 hectares in last year’s average.
WeeklyPricemovementofJeeraFutures
JEERA
Source:Reuters&SMCResearch
Ÿ Prospects of higher output
Ÿ Higher carryover stocks
Factors to watch
Ÿ Higher arrivals
Ÿ Lethargic buying interest in physical market
Ÿ Absence of exporters
Pricerange:12000-13700(Rs./Quintal)
Heatmap&SeasonaltableofJeerafuturesWeeklySpotPriceChart
2
• The final figures of progressive area under coriander of Rabi 2020-21 in Gujarat as on 25th Jan is reported at 1,41,004 hectares as
compared to 88,404 hectares during 2019-20 and 62,641 hectares in last year’s average.
• Despite of the reports of minor crop loss, prices are not gaining much as crop arrivals of new coriander are picking pace mandies.
• There is no carry over stock in coriander. The trade is almost hand-to-mouth and the pipeline is empty.
• The crops of coriander in Madhya Pradesh, Mansoar, Nimach, Kumbhraj and Jhalawar in Rajasthan are receiving primary reports
of loss.
• In days to come, range bound trade can be seen in Dhaniya futures in the range of 5500-6500
• Some overseas demand from Dubai and Gulf nations is anticipated to keep the spice price strong as well.
Fundamental factors:
• The new crop reported 12-14% moisture content and quoting higher in Kota and in Ramganj mandi.
• The arrivals of old coriander surged too as prices gained due to buyer enquiries. Demand from Karnataka and Tamil Nadu spice
millers has additionally helping to keep prices firm.
• On the contrary, the downside is also seen limited as lower level demand is emerging and surging each passing day.
• In some areas of Rajasthan and Madhya Pradesh, the standing crop of coriander has been affected due to extreme cold.
WeeklyPricemovementofDhaniyaFutures
3
DHANIYA
Source:Reuters&SMCResearch
Factors to watch
Ÿ Prospects of higher output
Ÿ Crop damage reports
Ÿ Lower level buying from South India
Ÿ Stockiest actively buying
Ÿ Export demand coming from Gulf
Pricerange:5500-6500(Rs./Quintal)
Heatmap&SeasonaltableofDhaniyafuturesWeeklySpotPriceChart
4
Vandana Bharti (AVP - Commodity Research) Boardline : 011-30111000 Extn: 625 [email protected]
Subhranil Dey Sr. Research Associate (Agro) Boardline : 011-30111000 Extn: 674 [email protected]
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