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CORIANDER SEED

NCDEX Coriander Future price had traded higher during the month of May and fell in June month so far, owing to higher arrivals in the domestic market with reopening of markets. Moreover, lower demand for Coriander seed was witnessed in the APMC markets in Madhya Pradesh, Rajasthan and Gujarat as the retail sectors continue to remain shut. Though the demand in the pharmacy sector was steady, however, local buying and exports remained sluggish in India and in the global front respectively. By 10th June, NCDEX Coriander Future price closed at Rs.6688/quintal, lower by 1.73% compared Rs.6806/quintal reported on 30th April.

Fundamentally for the month ahead, we are expecting NCDEX Coriander futures to witness mixed to bearish trend as the export demand from India is expected to be seasonally higher during the months ofJune and July. However, the domestic demand is expected to lower as the traders’ and farmers major focus is on the kharif crops over the rabi crops. Positive monsoon forecasts is bringing a sentimental decline in all agriculture commodities including coriander seeds. Additionally, we may see rise in imports from Russia and Bulgaria to India; especially during the month of July which will also weigh on the prices. Though the ending stocks is slowly declining in the major APMC markets of Kota, Ramganj, Rajkot and Guna in the above states, but then, the supplies are likely to exceed the demand in the month ahead that would bring pressure onthe prices.

On the daily chart, NCDEX Dhaniya (July) future has been trading in a Sideways Trend for the last few weeks, The price has reversed from the prior supply zone and settled below the 50 Exponential Moving Averages, which is also supportive of the bearish momentum. In addition, the price is trading below the Ichimoku Cloud, which confirms a bearish trend in the near future. Moreover, the indicator MACD also indicates the short position with negative crossover. Furthermore, on a weekly chart a momentum indicator RSI (14) reading is below 50 levels, which suggests a bearish move for the near term. Hence, based on the above-mentioned technical structure, one can initiate a short position in NCDEX Dhaniya (July) future at CMP 6738 or arise in the price till 6840 levels can be used as a selling opportunity for the downside target of 5900. However, the bearish view will be i negated if NCDEX Dhaniya (July) future closes above the resistance level of 7250.

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