Dhaniya futures (Coriander Futures) are contracts that allow traders to buy or sell coriander at a predetermined price on a specific future date. These contracts are standardized and traded on the NCDEX, providing a platform for price discovery and risk management for producers, traders, and consumers of coriander.
The standard trading unit for dhaniya futures is typically set at 5 tonnes.
Contracts have specified expiration dates, with monthly contracts being common.
The tick size (minimum price movement) is usually around INR 1 per 100 kg.
Participants in dhaniya futures include farmers, traders, and institutional investors. Farmers use these contracts to hedge against price fluctuations, while traders speculate on price movements to profit from market volatility.
Supply and Demand:
Prices are heavily influenced by seasonal production levels and consumer demand. For instance, during peak harvest seasons, increased supply can lead to lower prices.
Weather Conditions:
Adverse weather can impact crop yields significantly, thereby affecting prices.
Export Markets:
Changes in global demand for coriander can also influence domestic prices. If export demand rises, it can lead to higher local prices due to increased competition for available stocks
Recent developments indicate a growing interest in dhaniya futures. The introduction of options contracts on spices by NCDEX aims to enhance risk management tools for traders. This move is expected to increase market participation and liquidity, making it easier for stakeholders to manage their exposure to price risks associated with coriander trading
Additionally,analysts have noted fluctuations in prices due to changing supply dynamics. For example, reports indicated that dhaniya prices experienced modest increases due to firm trends in spot markets coupled with restricted supplies from producing regions
As Can see in weekly time frame, coriander futures market consolidates since many days, Major support zone seems at 6700—6000 as prices take reversal from that zone. Whereas the resistance intact at 8500. As prices traded above 8500, we can see an upside move or might can see target again around 11000—13000. As Far now as per RSI (Relative Strength Index) levels shows prices trade in between (30.00—70.00) which neither over bought nor over sold. As need for a breakout.
Until then, Happy Trading!
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