Spot Jeera Eases Last Week; But Downside Limited On Thin Stocks

MUMBAI (Commoditiescontrol) - Jeera prices dropped more than 1 percent at the benchmark Unjha market last week due to subdued activity in the spot market and dull business on futures.



Demand in Jeera at present is not very encouarging as buyers are hesistant to procure the commodity at the higher level due to prospects of sowing area to increase sharply this season, which will start from October.

The soil moisture for Jeera is very much favorable and with possibilities of increase in acreage there could be bumper crop next season, and thus buyers are not in mood to make bulk deals.

However Jeera stocks in the country is now very thin and may support any sharp fall in prices until next few weeks. However prices may jump sharply in case export demand picks up pace, which is not very strong in recent weeks.

Jeera stocks in Unjha is pegged between 8-9 lakh bags (55kg each), whereas all over Gujarat the stocks may be around 10-11 lakh bags left for the entire season. The monthly Jeera consumption is around 2.5-3 lakh bags, which means that country needs around 12.5-15 lakh bags of Jeera until new crop starts from March.

The current supply demand is tight, but still buyers are hesitant due to prospect of increase in acreage and slow export demand.

Jeera supply in the spot market has remained slow as sellers are liquidating their stocks in grudaul manner in the anticipation of bullish tone ahead due to tight stocks.

Other hand Jeera October futures rose 1.75% to settle Rs 19,970/100kg last week on the National Commodity & Derivatives Exchange Ltd (NCDEX). The contract during the week traded between Rs 19,065 to Rs 19,780. Open interest increased gradually during the week, with volume dropped sharply on Friday. Profit booking on futures could be witness in Jeera futures at the higher level.



(By Commoditiescontrol Bureau; +91-22-40015533)