- Prices strengthen across Badami, Eagle, Green grades
- Lower mandi stocks keep near-term coriander sentiment firm
Coriander prices strengthened across key physical and futures markets during the week ended 28 August, as declining stocks at major mandis outweighed a moderate increase in arrivals. Expectations of improving demand ahead of the upcoming festive season also supported market sentiment.
Prices rise across major coriander grades
The firming was broad-based across quality grades. BigMint’s Ramganj benchmark for Badami coriander rose by around INR 182/100 kg to INR 15,658/100 kg, while Eagle and Green grades increased by around INR 175/100 kg each to INR 16,133/100 kg and INR 16,633/100 kg, respectively.
At Guna, Badami prices increased by approximately INR 225/100 kg to INR 15,535/100 kg, while Eagle and Green grades gained around INR 230/100 kg each to INR 16,010/100 kg and INR 16,510/100 kg, respectively.
Prices climbed through most of the week before easing slightly on 28 August, indicating some profit-taking at higher levels. However, the broad-based gains across grades point to firm underlying market conditions.
Physical market tightens despite higher arrivals
Kota prices increased 1.5% w-o-w to INR 16,111/100 kg from INR 15,869, while Gondal prices rose 1.3% to INR 15,989/100 kg from INR 15,778. At the same time, arrivals increased 6.6% to 1,027 tonnes from 963 tonnes.
Despite higher arrivals, stocks moved in the opposite direction. Kota inventories declined by 233 tonnes to 13,559 tonnes, while Gondal stocks fell by 79 tonnes to 976 tonnes. The simultaneous rise in prices and decline in stocks indicates that incoming supplies are being absorbed reasonably well, limiting immediate downside pressure.
Steady trade activity as festive demand approaches
Current trade activity remains steady, with traders holding stocks in anticipation of higher prices as festive-season demand improves. Demand is expected to strengthen gradually ahead of the festive season, which could encourage domestic buying and inventory replenishment.
The combination of lower stocks and expectations of stronger seasonal demand is supporting prices. However, rising arrivals remain a key factor to watch, as a sustained increase in fresh supplies could limit the pace of further gains.
Futures curve reinforces firm sentiment
October futures rose 1.2% to INR 16,414/100 kg, while December gained 1.3% to INR 16,706/100 kg. October open interest declined to 18,370 lots from 19,095, whereas December open interest increased to 1,360 lots from 1,230.
The firm futures curve, particularly gains in the deferred December contract, reinforces positive market sentiment. However, the decline in October open interest suggests some position unwinding at higher price levels.
Outlook
Overall, coriander market sentiment remains firm with a cautiously bullish undertone. Broad-based gains across Badami, Eagle and Green grades, lower stocks at key mandis and expectations of stronger festive demand provide fundamental support. However, rising arrivals could cap further gains if supply pressure intensifies. Traders are likely to monitor fresh mandi arrivals, stock movement and festive-season demand before extending bullish positions.
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