India: Coriander market remains firm as far month contracts gain on tight supply expectations

• Far month NCDEX contracts strengthen w-o-w
• Spot prices edge higher despite improved arrivals

India’s coriander market maintained a firm tone during the week ended 25 June, supported by steady physical demand and stronger buying interest in far month futures contracts. Although arrivals increased marginally, expectations of tighter availability in the coming months and continued demand from the spice industry kept overall market sentiment positive.

Spot market stays resilient

The NCDEX spot price increased by INR 126/quintal w-o-w to INR 14,757/quintal from INR 14,631/quintal. Market arrivals rose by 124 t to 2,959 t from 2,835 t in the previous week, indicating improved supplies but not enough to pressure prices.

Far month contracts attract fresh buying

The August futures contract eased marginally by INR 46/quintal to INR 14,676/quintal from INR 14,722/quintal, reflecting some near-term pressure from better arrivals. In contrast, the October contract surged by INR 876/quintal to INR 16,172/quintal from INR 15,296/quintal, highlighting market expectations of tighter supplies and sustained demand later in the season. The June contract expired during the week.

Open interest shifted toward far month contracts following the June expiry. August open interest rose by 845 lots to 25,620 lots, while October open interest increased by 1,030 lots to 3,240 lots, indicating fresh long positions and improving participation.

Stocks offer limited supply comfort

Exchange-accredited warehouse stocks remained largely stable. Kota stocks were unchanged at 1,506 t, while Gondal stocks increased by 228 t to 15,612 t. Despite the increase in certified stocks, market participants continued to build positions in farm month contracts, reflecting confidence in the medium-term demand outlook.

Trade sources said steady buying from spice processors and stockists continued to underpin the physical market, while stronger participation in October futures suggested expectations of firmer prices in the coming months.

Short-term outlook: Coriander prices are expected to remain firm in the near term. While improved arrivals and comfortable exchange stocks may limit gains in nearby contracts, far month futures are likely to stay supported unless arrivals increase sharply or demand slows.