Coriander fut may trade rangebound on poor demand: Geojit

 Pepper futures are seen firm because of tight supply in the domestic markets along with slack demand from overseas buyers. On Monday, no arrivals were reported from Kochi spot market. As per the recent report from International Pepper Community, Netherlands pepper imports up to May 2012 stood at 7100 tonnes (comprising 5710 tonnes of whole pepper and 1390 tonnes of ground pepper) which was more or less same with imports in the same period last year. Netherlands imported 15086 tonnes of pepper in 2011. Major portion of pepper imported by the Netherlands was for reexport to the neighboring countries in EU. Vietnam was the most important pepper supplier for Netherlands followed by Brazil and Indonesia.

Coriander futures may trade in a narrow range due to low demand from domestic and overseas buyers. Meanwhile, generally lesser supplies in major spot markets may limit sharp fall in prices. As per market source, heavy rainfall in Rajasthan recently has led subdued trade in the spot markets. On Monday, total arrivals of coriander in major markets in Rajasthan were around 4700 bags (1bag=40kg), but it was comparatively higher from previous trading day. The spot price traded at Rs.4250 per 100kg. Coriander stocks in NCDEX accredited warehouse as on 08th Sep 2012 declined to 14581 tonnes from 14632 tonnes reported on previous day, exchange data showed.

Jeera futures may extent the uptrend due to likely rise in export demand. But the upside may be limited due to high stocks. Also, improved rainfall has raised the hope of better sowing for the coming season. The sowing begins during September-October. Moreover, the domestic demand is subdued. As per market source, due to heavy rainfall in the area buyers stayed away from the market, leading to sluggish offtake. On Monday, the arrivals in Unjha stood steady at around 3000 bags (1bag=55kg) with the spot price at Rs.14500 per 100kg. According to IMD report, heavy rainfall is expected to continue over Gujarat, Rajasthan and Punjab in the coming days. Still, the season's rain deficit is highest in Punjab at 54 percent followed by 49 percent in Saurashtra and Kutch.

Turmeric futures are expected to trade in red due to delivery pressure, high carryover stocks and weak export demand. The pick-up in sowing in Andhra Pradesh may too weigh on the price trend. The deficit in sowing in Andhra Pradesh has been narrowing because of improved rainfall in the state. As per Andhra Pradesh Agriculture Department, turmeric sowing in the state as of 05 Sep 2012 was down at 53838 hectares compared with 64427 hectares reported same period a year ago. On Monday, turmeric arrivals in Erode and Nizamabad were around 4000 bags and 1000 bags (1bag=70kg) respectively, down from previous trading day. The spot price for finger variety traded at Rs.5000-6500 per 100kg, unchanged from Friday.

Cardamom futures are seen trading weak due to lack of demand in the spot market. Sufficient stock availability too weighs on the market sentiments. Adequate rainfall received in major producing areas has eased concerns over lower output this year. However, the demand is expected to improve after last one and a half month of lean season. The arrivals and offtake at the auction held in Idukki on Monday were around 32 tonnes and 30 tonnes respectively. The spot price on an average was quoted as Rs.677.42 per kg. The maximum price stood at Rs.919 per kg. Cardamom stocks at MCX accredited warehouse as on 08th September 2012 stood steady at 109.70 tonnes from previous day but down from 116.6 tonnes reported last week, exchange data showed.

Chilli futures are expected to continue the downtrend on the back of higher arrivals in spot markets. However, improvement in demand from overseas market may limit sharp fall in prices. Reports of adequate stocks may too weigh on the market sentiments. According to market sources, some traders withhold their stocks expecting a rise in prices. Latest data from Andhra Pradesh Agriculture Department showed that, chilli sowing in the state as on 05 Sep 2012 declined to 72624 hectares from 93432 hectares on same period a year ago. On Monday, chilli arrivals in Guntur were around 40000 bags (1bag=45kg) and the spot price for 334-variety was quoted as Rs.5700 per 100kg.

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