A WEAKER rupee and lower arrivals pushed up spice futures at the commodity exchange NCDEX. Prices of all categories of spice rose on Monday with turmeric, jeera, and chilli hitting the upper circuit.
Since India is a major exporter of spices, the rupee's dip to a new low of 51.9 against the dollar improved sentiments in the futures market. Long positions were built in turmeric and jeera — the two popular counters among investors.
Despite a dip in the opening stock and lower arrivals pulled up turmeric price, which rose to Rs 4,700 a quintal from Rs 3,500 in December. On Monday, the turmeric April contract on NCDEX closed at Rs 4,694, up 3% from the previous close. It also recorded its highest ever turnover at Rs 327 crore on the same day as against an average of over Rs 200 crore. The volumes were the highest among agri commodities.
According to Alimuhammad Lakdawala, an analyst with Anand Rathi Commodities, turmeric can touch Rs 4,800-mark on NCDEX though the upside will not sustain once arrivals pick up.
In the case of jeera, the arrivals were low at 17,000 bags as against 20,000 bags in the past week (one bag carries 60 kg). Indian jeera will dominate the international market till May-June, before shipments arrive from Syria and Turkey. The domestic crop is also expected to be lower, adding to the pressure on prices.
On Monday the jeera March contract closed 4% up, at Rs 11,618 a quintal, recording a turnover of Rs 113 crore as against Rs 70-80 crore.
However pepper missed the party in the absence of any trigger from international markets. Indian prices are higher than international prices, and once the Vietnam crop arrives, local prices are expected to fall.
On Monday short-covering pushed up prices as open interest registered a decline. The pepper March contract on NCDEX closed 1%, up at Rs 10,687 a quintal. Even in the spot market, prices have taken a hit and are down at Rs 105 a kg from Rs 122 three weeks ago. Faiyaz Hudani from Kotak Commodity Services says a weak demand will keep the pepper counter bearish.
nidhi.sharma1@timesgroup.com
Since India is a major exporter of spices, the rupee's dip to a new low of 51.9 against the dollar improved sentiments in the futures market. Long positions were built in turmeric and jeera — the two popular counters among investors.
Despite a dip in the opening stock and lower arrivals pulled up turmeric price, which rose to Rs 4,700 a quintal from Rs 3,500 in December. On Monday, the turmeric April contract on NCDEX closed at Rs 4,694, up 3% from the previous close. It also recorded its highest ever turnover at Rs 327 crore on the same day as against an average of over Rs 200 crore. The volumes were the highest among agri commodities.
According to Alimuhammad Lakdawala, an analyst with Anand Rathi Commodities, turmeric can touch Rs 4,800-mark on NCDEX though the upside will not sustain once arrivals pick up.
In the case of jeera, the arrivals were low at 17,000 bags as against 20,000 bags in the past week (one bag carries 60 kg). Indian jeera will dominate the international market till May-June, before shipments arrive from Syria and Turkey. The domestic crop is also expected to be lower, adding to the pressure on prices.
On Monday the jeera March contract closed 4% up, at Rs 11,618 a quintal, recording a turnover of Rs 113 crore as against Rs 70-80 crore.
However pepper missed the party in the absence of any trigger from international markets. Indian prices are higher than international prices, and once the Vietnam crop arrives, local prices are expected to fall.
On Monday short-covering pushed up prices as open interest registered a decline. The pepper March contract on NCDEX closed 1%, up at Rs 10,687 a quintal. Even in the spot market, prices have taken a hit and are down at Rs 105 a kg from Rs 122 three weeks ago. Faiyaz Hudani from Kotak Commodity Services says a weak demand will keep the pepper counter bearish.
nidhi.sharma1@timesgroup.com
No comments:
Post a Comment