Coriander futures up 1.64% to Rs 6,692 per quintal

Coriander prices rose 1.64 percent to Rs 6,692 per quintal on the National Commodity and Derivatives Exchange (NCDEX) on August 10 as traders widened their bets tracking the spot market.

Coriander September futures, which had seen significant profit booking in the last week of July, recouped most of the losses during last week and rose 2.4 percent to settle near Rs.6,584 on August 7.

Though arrivals have increased in the first week of August, lower arrivals of good quality coriander have supported prices from lower levels. As per Agmarknet data, coriander arrivals during July plunged nearly 30 percent from last month and touched around 33,010 tonne.

"Looking at lower supply and good demand for the good quality crop, we expect coriander to trade rangebound with a positive bias for this week," Kotak Securities said.

The Ministry of Agriculture estimates Indian coriander production of around 7.6 lakh tonne in FY20 compared to 5.9 lakh tonne produced last year, primarily due to higher acreage in Gujarat.

In the futures market, coriander for August delivery touched an intraday high of Rs 6,644 and a low of Rs 6,500 per quintal on the NCDEX.

Coriander for August delivery gained 1.6 percent to Rs 6,610 per quintal on a business turnover of 2,245 lots. The same for September delivery rose 1.64 percent to Rs 6,692 per quintal on a business turnover of 2,805 lots.

"NCDEX Dhaniya is seeing support at Rs 6,430-6,400 as bears have failed in keeping it below that level on a few closings. As a result, the bulls are regaining their strength. Immediate resistance now stands at Rs 6,776-6,780. Sustenance above that might take it till Rs 7,100, its next resistance," the brokerage added.

On the flip side, Kotak Securities feels a break and close below Rs 6,430-6,400 may take prices till Rs 6,200, its 200 DMA support. "So till Rs 6,400 holds on a closing basis, the upside is expected to remain intact."

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