Jeera futures in slim band

Spot and futures prices of jeera, or cumin seeds, are likely to trade within a narrow range in the next couple of weeks as supplies continue to match demand in the spot markets, analysts and traders said.

"Prices have been weak. There is not much bullishness in the market. A pick-up in the spot market demand will be key to price movements in futures," said Faiyaz Hudani, analyst, Kotak Commodities.

Jeera futures on the NCDEX have been on a downward course in the last couple of months mainly due to heavy arrivals coupled with a slack demand. Jeera August contract that expired Monday ended at Rs 10,809 per 100 kg. It lost 19 per cent since the start of the contract.

The September contract has shed 16 per cent since its launch on June 11. "Stocks are plenty while export demand is weak at the moment. Local demand has also ebbed. Buying should come in before Diwali," said Bhanu Bhai, an Unjha-based trader. Exporters and traders have also completed buying for Ramzan, said Arun Bhinde, a Mumbai-based dealer.

Traders in Unjha have ruled out a bullish trend in jeera for the next couple of weeks. Prices may move up consistently only if good buying support emerges in spot markets, said Vinayak NV, research analyst, Karvy Comtrade. According to analysts, the imposition of near-month position limits on jeera in May has led to a fall in trading volumes and liquidity.