Coriander To Gather Some more Buying In the Near Term

Bullish trend might persist in coriander futures on the heels of weak arrivals in local mandies along with strong stockiest demand. The NCDEX coriander futures swelled by almost Rs 75 per quintal today.
As per market sources, the total daily arrivals of coriander were remained thin in local mandies due to restricted supply by cultivators at lower levels. The total daily arrivals of both Ramganj and Kota mandi were reported at around 50-60 thousand bags in the last trading, while the spot prices swelled by almost Rs 100-150 per quintal in the last day to trade around Rs 6500-7200 per quintal.
The team of commodityinsights.com projected that the total supplies of coriander in the coming year (2012-13) are likely to decline by almost 45% on the back of weak domestic production along with fragile carryover stocks. The total production of coriander in the coming year is estimated at 50-60 lakh bags (1 bag = 40 kgs) against 1.10 crore bags that was reported in the last year. This is mainly due to weak sowing acreage in the current year.
The NCDEX Coriander May futures increased by Rs 75 per quintal today to settle around at Rs 7612 per quintal in the last trading. The NCDEX contract added 5.30% positions in open interest indicating long positions by traders. Technically, NCDEX futures are likely to gather supports around 7540-7550 levels while resistances are likely at 7740-7750 levels in the near term.
Source by Commodity Insights