Spices rallied on lower monsoon and higher export demand: Angel Broking

Mr. Anuj Gupta (DVP - Commodities & Currencies Research, Angel Broking):

"Spices have rallied in last one week on the back of a lackluster of monsoon in the growing areas. Jeera has increased by 5% to 18,350 per quintal, turmeric has increased by 7.20% to 7274 per quintal and coriander has also increased by 4.10% to 7307 per quintal levels. Less rainfall may impact on the production of theses spices. The export demand is also robust. We are expecting that due to fewer monsoons and the robust export demand, it may support the increase in the prices of these spices. Another factor that would affect the price of spices would be the festival demand. This will increase from end of the July and this will also support the increase prices of Spice. We are also expecting a good demand from china. Overall around 20% of acreage may fall due to lower rainfall in the growing areas.

We are expecting jeera to touch 18,800 to 19,000 levels, turmeric to touch 7,400 to 7,600 and coriander to touch 7,500 to 7,700 levels in next one month."

Source : Equity Bulls

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