Spices slip as turmeric gains on strong inventory buying

Tight arrivals lift benchmark spice contracts as export demand weakens and ample market supplies continue to cap broader sentiment

Futures contracts of most spices traded lower on the National Commodity and Derivatives Exchange on Friday, while turmeric prices continued to rise as traders increased purchases to rebuild inventories amid supply concerns.

 The most-active June turmeric contract was up 0.3% at ₹16,250 per 100 kg at 1540 IST. Analysts said lower-than-normal arrivals in key markets of Maharashtra and Telangana supported prices during the peak marketing season.

According to Kedia Advisory, reduced arrivals have created an immediate supply squeeze, prompting traders to actively accumulate stocks. Some farmers are also holding back produce in anticipation of prices rising towards ₹18,000 per 100 kg.  However, farmers needing funds ahead of the kharif sowing season are continuing to sell at current prices, which has kept the market balanced. Turmeric prices have been rising steadily since Tuesday and are expected to close higher for the fourth consecutive session.

  Kedia Advisory said higher arrivals of late-harvested turmeric with elevated moisture content led to discounts for average-quality produce. Profit-booking by traders who had built stocks earlier in the season also added temporary pressure on prices.

 SMC Global Securities expects turmeric futures to remain elevated in the range of ₹15,800-₹16,600 per 100 kg in the near term.  Meanwhile, jeera futures traded marginally lower due to weak export demand and adequate supplies in the domestic market. The most-active June jeera contract was down 0.1% at ₹19,710 per 100 kg.  Analysts said arrivals in Rajasthan declined because of unfavourable weather conditions, but supplies from other producing states remained sufficient.

  Though overall stocks are available, the quantity of premium-quality “Sortex” grade jeera is lower than last year, supporting higher prices for superior varieties. 

  Coriander futures also remained under pressure for the third straight session. The most-active June coriander contract fell 0.3% to ₹12,736 per 100 kg. Analysts said strong arrivals in major mandis across Madhya Pradesh and Rajasthan are keeping prices range-bound despite healthy demand fundamentals.            —Informist