Expect weak movement in Coriander: Sharekhan

Sharekhan's report on agricultural commodities

• Coriander witnessed a weak tone.
• According to the Spices Board of India, coriander exports in 2012-13 (April-March) were higher at 37,100 tonne, compared with 28,100 tonne a year ago.
• Masala millers are buying on current level, thus supporting the prices. Export queries from Thailand and Dubai also restricted the fall in prices.
• Traders and framers liquated large portion of their old stocks, which currently weighs on the prices.
• However, lower production would support the prices in long term.

• Futures markets witnessed weak tone.
• Market sources revealed that lower crop prospects are expected in Iran, Turkey and Syria.
• According to Spices Board of India, jeera exports in 2012-13 (April-March) were at 79,900 tonne compared with 45,500 tonne a year ago. As per market source, India is likely to have exported over 20,000 tonne jeera in April-May 2013.
• The new crop arrivals weigh on the prices but lower supply in lean season would support the prices in near term.
• Export demand is likely to improve in the coming weeks because of lack of supplies from Syria and Turkey. Cumin seed planting reported only 10 percent of normal in the second largest producing country, Syria. Meanwhile, output in Turkey may be normal at 8,000-10,000 tonne.
• For Singapore, 1 percent Indian cumin seed offered at USD 2,300- USD 2,350 per tonne FOB Mumbai.
• For Europe, 1 percent Indian cumin seed offered at USD 2,750- USD 2,850 per tonne CNF from Mumbai.

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