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Turmeric

Turmeric so far has not performed well in the year 2022 as compared to other spices which have gained more than 30% till date. The 1 month performance for Turmeric was a negative i.e 17% which proves to be worrisome. Turmeric prices have dropped over 13% in 2022 as turmeric output is pegged at 11.76 lakh tonnes against 11.24 lt in 2020-21, which is low as per first advance estimates by the Govt for 2021/22 season. In the FY 2021/22 (Apr-Feb), exports were down by 20% at 1.37 lakh tons compared to last year but higher by 8.3% compared with the 5-year average. Further we can see that the new season turmeric is arriving in the market and exports are normal this season. Despite the unusual weather disturbance seen last year it did not create a strong impact on production. Turmeric performance as of now has not performed well because since the last couple years there was impact of immune booster demand which can now seen to be declining as the covid concerns are not at peak. As we know whenever a new season arrives for any spice, it can create a negative impact on further prices.

BUY TURMERIC AROUND 7900-8000 SL BELOW 7650 TGT 8550-8700. NCDEX

Jeera

Jeera has given good returns in the year 2022 with a 31.44% change YTD. It had gained on the reports of decline in the sowing area and improving domestic demand post covid. The domestic demand has picked up as stockists started buying in the market on the reports of lower sowing expectations and slow progress of sowings so far. The state of Gujarat, where Jeera has the highest production area, saw only 3.07 lakh hectares area under cultivation in 2021-22 as compared to 4.69 lakh hectares during the same period in the last year. Also, one of the reasons behind its rally is that production is expected to decline by 41% to 2.37 lakh tonnes as compared to last year's 4 lakh tonnes as per second advance estimates. Production in the current year is estimated to be around 45 lakhs sacks while carry forward stock is expected to be 15 lakhs sacks. Demand in Jeera is expected to be in a good trend in the spot market in upcoming months and ending stocks for 2022-23 Marketing Year are reported lower by 50.79%. India’s export prospects have improved for this year as the supplies are limited in Turkey and Syria, which compete with India in the exports market. The rupee depreciation is directly proportional to the export gains with limited stock availability and rupee weakness is making prices very competitive.

SELL JEERA AROUND 21200 SL ABBV 22000 TGT 19500. NCDEX

Dhaniya​​​​​​​

Dhaniya prices rose over 38% in 2022 on expectations of strong local demand for the new crop amid lower production estimates for the 2021-22 (Jul-Jun) season. Dhaniya among the other spices have performed the best so far for the year 2022, as it has given a massive return of more than 32% till date. But recently Dhaniya prices also saw a sharp sudden fall of 6% in a day creating doubts in the market sentiments. Domestic and export demand for the spice is also expected to improve as the new arrivals have started hitting spot markets. India’s export prospects have improved for this as there was also rupee weakness seen. The Rupee has also not performed so well in the past 1 year generating only 2.01%. In Rajasthan and Madhya Pradesh, there has been a significant decrease in the sowing of dhaniya in the current year. The estimates presented in a seminar held in Rajasthan showed that the total availability of coriander in the country is expected to be 12 million sacks.

SELL DHANIYA AROUND 11800 SL ABV 12600 TGT 10500. NCDEX

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