Commodity spikes

Jeera futures continued to be sluggish in the overseas and domestic markets last week. Moreover, reports of good rains in jeera growing areas in Gujarat, signalling better sowing, contributed to dampening the market sentiment. The near-month contract fell by Rs 500 a quintal, or 5 per cent, on the National Commodity and Derivatives Exchange (NCDEX) in the last one week. It fell by around Rs 2,000 a quintal, or 17.2 per cent, over a month to Rs 9,515 a qunital from Rs 11,492. Earlier, market sources had forecast a 15-20 per cent decline in sowing area in Gujarat. But with recent rains, marketmen expect sowing to be normal. According to commodity analysts, the market could witness a further fall of Rs 200 a quintal, bringing the level nearer to Rs 9,000 mark.

The country exported 13,000 tonnes in April-September against 17,000 tonnes exported during the corresponding period last year, a fall of over 23 per cent. In the physical market (Unjha), prices were quoting at Rs 10,700 a quintal, around Rs 1,000 more than the futures prices. Market sources said the wide gap between spot and futures would fall as the former was expected to slip. The jeera contract on NCDEX for delivery in December closed at Rs 9,515 a quintal on Friday against the previous week's close of Rs 10,013 a quintal.

Turmeric steady
The turmeric market experienced a bullish rally last week and closed firm. Sources said the market would remain rangebound with a positive bias. This is contrary to the earlier expectation that better output may stoke bearish sentiments in the market. With the season coming to an end, farmers are left with very less quantity. Majority of the stocks are with stockists. Commodity analysts said that stockists (who are learnt to have over 15-16 lakh bags) were playing a vital role in fuelling strong sentiments in futures. Moreover, stocks in the warehouses of commodity exchanges are less, pushing the prices up. According to sources, domestic demand, specially in the retail segment, is strong. Last week, the near-month contract on NCDEX climbed up by over Rs 100 a quintal to Rs 2,339 against the previous week's close.

However, experts believe Rs 2,350 a quintal level to offer resistance in the coming week. The December futures on NCDEX closed on Friday at Rs 2,290 a quintal, up 2.69 per cent, against the previous week's close of Rs 2,230 a quintal.