Demand drives jeera

COMMODITY SPIKES

With winter on the threshold, demand for jeera has pushed the futures market up in the past week. Commodity experts maintained that the coming week will be no different and that demand will continue to be stable.

In the past few weeks, the market has been reeling under lacklustre demand in the physical market with prices dipping below Rs 10,000 a quintal. However, with increased arrivals and demand from the domestic as well as international markets, the rates were up over Rs 11,200 a quintal, an increase of 5.47 per cent. The arrivals in Unjha market were reported to be around 5000 bags (each of 55 kg), which was until recently in the range of 2,000-2,500 bags.

Likewise, offtake almost doubled in the last week to 8,000-10,000 bags per day from 4,000-5,000 bags per day. Analysts said next week may see a bull run of another Rs 500 a quintal.

Indian jeera quoted is the lowest in the international market at $2,800-3,000 a tonne against $3,200-3,800 a quintal in Syria and Turkey.

Last weekend, the near month contract of jeera on the Ncdex closed at Rs 11,281 compared with previous week's closing price of Rs 10,695 a quintal.