- Steady arrivals, buyer resistance at higher levels cap price gains
- Inventories remain adequate, do not indicate immediate supply shortage
India’s coriander prices remained firm during the week ended 21 August, with declining stocks at key mandis providing support, while steady arrivals and selling at higher levels amid buyer resistance limited the upside. Prices gained w-o-w despite correcting from their mid-week highs, indicating that underlying sentiment remains supportive but buyers are reluctant to chase the market at elevated levels.
At Kota, coriander prices rose to INR 15,869/tonne (t) on 21 August, up 0.5% from INR 15,785/t a week earlier. Gondal prices increased 1.0% to INR 15,778/t from INR 15,626/t. Prices across major qualities strengthened through 18 August before easing in the following sessions, highlighting lower demand at higher levels.
Prices remain firm
BigMint assessments reflected a similar trend, with premiums for better-quality coriander remaining intact. On 21 August, Ramganj Badami was assessed at INR 15,810/t, while Eagle and Green stood at INR 16,287/t and INR 16,783/t, respectively. At Guna, Badami was assessed at INR 15,667/t, Eagle at INR 16,143/t, and Green at INR 16,645/t.
By 25 August, Ramganj assessments had eased to INR 15,722/t for Badami, INR 16,197/t for Eagle, and INR 16,697/t for Green, reflecting a correction from the mid-week peak. However, the continued premium commanded by Eagle and Green indicates relatively stronger valuations for higher-quality material.
Lower stocks offset steady arrivals
Stocks at Kota declined 2.6% w-o-w to 13,792 t, while Gondal stocks edged lower to 1,055 t. The decline, particularly at Kota, provides a supportive backdrop by gradually reducing readily available supplies. However, inventories remain adequate and do not indicate an immediate supply shortage.
Arrivals increased 2.6% w-o-w to 963 t on 21 August from 939 t a week earlier. Continued arrivals are allowing buyers to meet requirements without aggressive bidding, keeping gains in check.
Forward OI rises sharply
The futures market showed increased participation in forward months. October 19 contract open interest (OI) rose nearly 23% w-o-w to 19,095, while December 18 OI increased more than 46% to 1,230. The rise in open interest alongside only moderate price gains points to active two-way positioning rather than a clear one-sided bullish build-up.
Outlook
Coriander is likely to maintain a firm bias with limited upside in the near term. Further stock depletion or a decline in arrivals could encourage fresh buying, while adequate supplies and selling at higher levels may keep prices range-bound.
Leave a Reply