MUMBAI (Commoditiescontrol) - Spot Jeera edged higher during the week ended Saturday (Sept 18-23) supported by some revival in demand amid ongoing futures, thin stocks and firm cues from futures.
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Demand for Jeera in the spot markets was seen little better from local, upcountry buyers as well as overseas markets. Domestic demand improved due to ongoing festival season.
Overseas buyers turned towards India for their demand as Syria and Turkey crop almost exhausted due to lower crop. Further Indian Jeera are almost similar to offer price of other key producers.
Jeera prices earlier this month has exhibited bearish tone due to slow demand at the higher rates, but prices find support at the lower level since domestic stocks are thin.
According to market sources, Jeera stocks in the Gujarat estimated to be around 10-11 lakh bags (55kg each), while stocks in other key trading centres are low. The new Jeera crop will now arrive only from February, which means that five month of time span left before new crop hits the market.
The country needs around 12.5-15 lakh bags of Jeera for consumption of five month. The monthly domestic/export Jeera requirement is around 2.5-3 lakh bags.
Though the fundamentals in Jeera is bullish, but buyers are cautious as well as they anticipate sharp rise in acreage under Jeera next season due to much better rates and good soil moisture. Jeera sowing will start from October.
According to premliminary report recieved from market sources suggest that acreage may rise around 20-30% against last year. Jeera has been sown in 760,130 hectares in 2016-17.
The expectations of sharp rise in Jeera acreage has prompted buyers to trade with cautious approach as current rates are around record high level and involved high risk.
Further export of Jeera so far this marketing year was not as encouraging as it was last year due to higher rates.
“High prices have hit export demand to some extent. Exports are continuing, though at hand-to-mouth level,'' said exporters based in Mumbai.
Jeera fundamentals overall is bullish, but prospects of higher acreage may keep its prices in tight range. However prices may trade higher in case export demand improves, which at present is hand-to-mouth.
The most active Jeera October futures ended the week Friday (Sept 18-22) 0.20% higher to Rs 19,625/100kg on the National Commodity & Deratives Exchange Ltd (NCDEX). The contract during the week traded within range of Rs 19,480 to Rs 19,890.
(By Commoditiescontrol Bureau; +91-22-40015533)
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