The new crop is expected to come by mid-June
Cumin seed or Jeera demand remained weak at Unjha market amid lower arrivals on Thursday.
The arrivals were reported lower at around 7000 bags (a bag = 60 kg) with prices hovering in the range of Rs 12,000 to Rs 12,250 per quintal in the spot market amid poor domestic demand.
The arrivals at the Unjha market are on a decline due to ending season, while the prices have turned bearish in absence of strong buying support from domestic and international buyers.
According to trader sources, the subdued sentiment may continue for some days as the demand from local buyers has stopped.
"The demand from domestic buyers is almost over, while international buyers are waiting for the fresh crop from Turkey and Syria. The new crop is expected to come by mid-June. This may create a bearish sentiment in the commodity for some time," said Arvindbhai Patel, former president, Unjha APMC.
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In March this year, jeera prices had shot up to Rs 18,000 per quintal, while during the peak season, the arrivals had touched 28,000 bags.
However, with season coming to an end, the arrivals have dipped to around 7,000 bags per day and prices are hovering at Rs 12,000 per quintal in the spot markets.
In the futures market, jeera for immediate delivery contract gained by Rs 281 per quintal and traded at Rs 14,317 per quintal on National Commodities and Derivatives Exchange (NCDEX) on Thursday.
"The production statistics from two major cumin seed producing countries, Syria and Turkey hold the key to future price trend in the spice commodity. The exporters are waiting for the arrival of fresh crop, hence no further buying activity is taking place. This may create a bearish sentiment in Jeera in the coming days," said a trader from Unjha.
The industry expects the domestic jeera production in the range of around 2.8 - 3 million bags or roughly around 150,000 tonnes for the current season.