- Futures decline as speculative selling intensifies, with October contract down INR 348/qtl in two sessions
- Declining stocks and limited arrivals provide supply-side support, but weak spot demand offsets gains
Coriander prices remained under pressure on Thursday as continued speculative selling dragged NCDEX futures lower, despite a relatively supportive supply-side picture. The October contract was trading at INR 14,256/quintal (qtl) on 18 September, down INR 116/qtl on the day, after falling INR 232/qtl to INR 14,604/qtl on 17 September. The decline of INR 348/qtl over two sessions highlights persistent selling pressure in the futures market. Meanwhile, limited spot arrivals and declining exchange-monitored stocks suggest that the current weakness is being driven more by subdued demand and futures selling than by an increase in physical availability.
Futures selling weighs on sentiment
The NCDEX spot price stood at INR 14,988.75/qtl on 17 September, while demat stocks were reported at 10,477 MT. Stocks declined by 19 MT in a single day and have fallen significantly compared with 15 September, pointing to gradually tightening availability.
However, lower stocks have yet to translate into stronger buying interest. Weak physical lifting and continued selling in futures are limiting a recovery in spot and futures prices. If speculative selling persists, futures movement could continue to influence sentiment across the physical market in the near term.
Mandi prices remained under pressure, although performance varied by quality. In Ramganj, Badami was quoted at INR 13,000–13,600/qtl, Eagle at INR 13,900–14,000/qtl, Scooter at INR 14,000–14,300/qtl and Badami Machine Clean at INR 14,300–14,900/qtl, with arrivals around 3,500 bags.
In Agar Malwa, Badami Clean was quoted at INR 14,600–14,800/qtl, Eagle Machine Clean at INR 14,900–15,100/qtl and Scooter Clean at INR 15,600–15,800/qtl. In Gondal, Eagle was quoted at INR 14,355–14,405/qtl, Eagle+ at INR 14,605–14,655/qtl and Scooter at INR 15,005–15,105/qtl, with arrivals around 800 bags. Higher-quality material is therefore showing relatively better price resilience despite the broader market weakness.
Limited arrivals fail to trigger buying
Major Gujarat mandis recorded around 2,300 bags of coriander arrivals on 18 September. Gondal accounted for around 1,500 bags, while Junagadh and Rajkot recorded around 250 and 350 bags, respectively.
Despite the limited arrivals, spot prices declined by INR 100–150/qtl. The price weakness in the face of restricted supply indicates that demand remains the dominant market driver. Weak spot lifting is currently offsetting the support from lower arrivals and declining stocks.
INR 14,000/qtl emerges as key support
The INR 14,000/qtl level has emerged as an important psychological support for coriander futures. A moderation in speculative selling could attract buying at lower levels, particularly if physical availability remains tight. Conversely, a decisive break below INR 14,000/qtl alongside continued weak spot demand could expose the market to further downside pressure.
Outlook
Coriander prices are likely to remain under short-term pressure as speculative selling and weak spot buying continue to weigh on sentiment. However, declining stocks and limited arrivals indicate that the physical supply situation is not decisively bearish. Market direction will depend on the intensity of futures selling, improvement in spot lifting and the pace of arrivals. The INR 14,000/qtl level remains crucial in determining whether futures can stabilise or face further pressure.
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