Reasons for falling saffron prices in the commodity exchange
Regarding the trend of saffron prices in the stock market, a capital market expert said: Waiting for an increase in the supply of saffron in the market on the eve of harvest time along with the fall in the price of the dollar in the past few months has reduced the price of last year’s harvest in the market.
Mohammad Amiri examined the trend of saffron transactions and said: According to the traditional market cycle, saffron growers always sell part of their product to compensate for their current costs at the beginning of the harvest, and this in increasing the level of product delivery to stock exchanges or supply in The traditional market will be effective.
He added: the second part of the offers will be offered in the market with the approach of Nowruz, and finally, with the approach of the harvest time of the new product, the harvest product of the previous year will be sent to the market as a so-called old product, which is a factor in falling prices. Are considered.
The capital market expert emphasized: Another important point that affects the price trend of saffron is the influence of prices on the foreign exchange market, because futures market players are always sensitive to dollar transactions and have a glimpse of the currency price trend and consider the dollar exchange rate as one of the The parameters involved in the pricing of saffron futures contracts are known; So that with the fall in the price of the dollar from about 15 thousand tomans to the level of 11 thousand tomans, the price of saffron has also decreased in the futures market and has also affected the deposit certificate market of this product.
Criticisms that open up cheap time!
He stated that the market is going through its natural fluctuations and routine and it cannot be said that the market trend is irrational and false, adding: If some people say that the price trend of natural saffron is false. Why at a time when the price of each kilogram of saffron in the stock market had reached about 15 to 16 million tomans, these issues were not raised, and now that prices have fallen for reasons such as approaching harvest time and falling dollar prices, these issues have been raised. ?
Amiri considered the stock exchange as a transparent place to discover prices that both buyers and sellers can trade easily and at the right time; So that if the prices traded on the stock exchange are cheap from the point of view of some traders and exporters, then they can buy the product at lower prices than the traditional market and sell or export it on the open market, and if the prices on the stock exchange are higher than the free market, the producer can Offer your quality product at the best price in this market.
Increasing the symbols and the capacity of the warehouse is a sign of the farmer’s trust in the stock market
Amiri also referred to commodity deposit certificate transactions in the stock exchange and said: Currently, about two years have passed since the launch of saffron deposit certificate transactions and nearly four years have passed since the commodity deposit certificate transactions were launched in the Iran Commodity Exchange. This market is maturing; So that even people who have little knowledge of these transactions, with the necessary culture and training are well acquainted with this trading tool.
The commodity broker emphasized: During this period, the stock exchange has been able to provide transparency, trust and confidence for agricultural activists, and the increase in trading volume and market depth in commodity deposit certificate transactions, especially saffron and cumin, shows that farmers enter this market. They trust because the farmer is confident that with the help of commodity deposit certificate transactions, he can receive his money from the buyer in the shortest possible time and without any problems, and sell his product directly to the buyer based on the price on the board.
The capital market expert said that with the farmers’ trust in the stock exchange in saffron and cumin trading, the depth of the market has increased and the trading volume is increasing. The proof of this claim is the development of trading symbols and the increase in stocks listed on the Iran Commodity Exchange, he said. At the beginning of the saffron trading in the stock exchange, only one warehouse was accepted, which during the last year, the storage capacity in the stock exchange has increased and several new warehouses have announced their readiness to deliver saffron farmers’ products and have been placed under the stock exchange key. In other words, with the entry of saffron into the stock market, both the farmer and the warehouseman and exporter are satisfied.
According to Amiri, the noteworthy point is that price fluctuations and fluctuations are natural and the nature of the market and are influenced by cross-sectional and seasonal conditions. In this market, the farmer easily sells his product in the form of a commodity deposit certificate. Even some more financially savvy farmers have come in, both to cover risk and to invest in futures trading.
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