In the wake of strong demand in domestic markets and shortage of stocks, spot jeera prices today rose to touch a high of six months. Apart from this, futures trading also contributed to the rise in spot prices.
At the Unjha APMC price was up by Rs.30-40 per 20 kg today and quoted at Rs. 2450-2600 per 20 kg for the best quality. For medium quality price hovered around 2350-2450. Arrival was 3,500 bags of 60 kg each. On 4th January Jeera price was quoted Rs. 2900-2934 per 20 kg. In futures market, July contract at National Commodities and Derivatives Exchange (NCDEX) closed at Rs.12945 per 100 kg, which showed an increase of Rs 50. August contract ended up at Rs.13084."Farmers and stockiest are holding the stocks of jeera. They are not willing to sell at this price. This has resulted into slowing down of arrivals. The futures market will see some profit booking after the price reaches to a level of Rs.13250," said Badaruddin Khan, research analyst at Angel broking.
According to Ajay Kumar Kedia of Kedia Commodities, “There will be some pressure on prices as they have been rising since last 15 days. Jeera price can go down to Rs. 12400-12450 in futures market".
Better production in other major producing nations such as Syria and Turkey as well as India will cap the upside in the jeera prices in the medium term.
On the other hand, local traders from Rajkot and Unjha are of the view that price will not come down much as there is a strong demand in local markets and stocks are very low.