Dhaniya may spice up before festival season



Dhaniya futures was on a downward trend during the week ended September 8, tracking negative cues from the physical market. Increase in supplies of quality material in anticipation of higher domestic demand ahead of the festival season has put downward pressure on prices. At the National Commodity and Derivatives Exchange, coriander prices for delivery in October contract slipped by ₹196, or 3.86 per cent over the previous week, to close at ₹4,874 a quintal, with an open interest of 35,610 lots. In the cash market, coriander prices dropped by ₹100-230 per quintal across the major markets, including Kota, Neemuch, Rajkot and Gondal.

Outlook

Dhaniya futures are likely to trade on a positive note in the upcoming week. Supplies of Indian produce as well as imported material are expected to decline in the near future as prices are trading near to their multi-year low levels. Further, purchasing activities by organised retailers and interstate traders are expected to increase ahead of the festival season, which too will be supportive of dhaniya prices. Monsoon rainfall is likely to be weak to fairly widespread in Gujarat, Madhya Pradesh and Rajasthan until September 15.



The writer is Head-Commodity Research, Karvy Comtrade

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