Commodity Strategies: Buy Chana, Chilli, Coriander on dips

Cyprus woes weigh on agro-commodities. Buy Chana, Chilli, Coriander on dips, while sell all other commodities

Red Chilli Guntur market was reported steady on Monday. Shiv Kumar Mahadev Kumar, Guntur chief Shiv Kumar Banka says, red chilli production in Guntur area is down by 25-30 per cent and total production may be around 70-75 lakh bags. However, carry forward stock may be around 20 lakh bags. Stockists and exporters are active, as red chilli production is down; hence prices may get support in coming days. Banka says, red chilli arrival will be more till 10-12 days, but after that lower arrival may support the prices. In Dharwad district, Karnataka chilli production has been on the decline in the district. In 2011-12, chilli was cultivated on 34,186 hectares of land whereas the yield was 25,639 tonne. In 2012-13, area under cultivation has fallen to 7,790 hectares and the yield is down to 9,000 tonne. Bangladesh buyers are actively trading in Teja variety.

Firm sentiment witnessed in Coriander spot market on Monday.Market witnessed strong buying for well-dried crop while the new coriander crop contains high moisture content. Demand continued from South India. Coriander output estimated at 50 lakh bags in the major producing states – Rajasthan and Madhya Pradesh, while carry forward stocks pegged at 20 lakh bags.

In Chana, steady movement has witnessed at NCDEX. Moreover renewed buying interest reported in domestic cash markets. Desi chana moved up by Rs 25-50 per quintal at the major trading center across Madhya Pradesh and Chhattisgarh on some good demand tracking positive futures. Meanwhile, desi chana ruled steay in Maharhastra and Karnataka. Chana quoted up Rs 75 a quintal in Kanpur pulses market on Monday. Australia chana is offering stable at $660-665/MT for March-April shipment at the Nhava Sheva port. Chennai port manifest from 8th March to 15th march 2013.