Upward trend in Coriander may continue in near term: Angel
According to Angel Commodities upward trend in the coriander prices may continue in the near term considering the erratic weather conditions, lower supplies during the lean season period and expectations of lower carryover stocks towards the end of the year.
October 09, 2013 / 12:58 IST
Updates on Coriander by Angel Commodities
The year 2012-13 was witness to a significant fall in the coriander output on the back of lower acreage and unfavorable weather conditions. As a result, prices of this spice saw robust gains during the first quarter of 2013. However, since April 2013, Coriander prices remained largely bearish as supplies of new crop augmented in the domestic markets. The downward trend in the coriander prices was also supported by good monsoon raising hopes of better Rabi sowing. Prices failed to recover even during the Ramadan festival when the demand for coriander from the Middle East typically increases.Over the past few weeks prices have witnessed a sharp reversal in the trend due to lean supply season. Also, expectations of lower carryover stocks, along with prolonged heavy rains in South Rajasthan, Gujarat and parts of Madhya Pradesh helped push up the prices.Outlook: Upward trend in the coriander prices may continue in the near term considering the erratic weather conditions, lower supplies during the lean season period and expectations of lower carryover stocks towards the end of the year. Due to prolonged heavy rains in the major coriander growing regions of Rajasthan, Madhya Pradesh and Gujarat, there are some delays in the harvesting of the kharif crop. Thus, this may also lead to some delay in the commencement of sowing of coriander. Market expectations are that the sowing may be delayed by around 15-20 days to around 5th November as against the normal commencement around 15th -20th October. However, gains are not likely to sustain as prices may again come under pressure once the sowing commences in full swing. November onwards prices shall take cues from the sowing progress. Good rains in the major coriander producing belts of Rajasthan, Madhya Pradesh and Gujarat have increased prospects of a good sowing in the upcoming season, as it has increased the soil fertility.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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