Jeera prices came under pressure as arrivals increased in the spot market. Jeera prices fell by Rs 15-20 per 20 kg in spot, while the same recorded a decline in the futures market due to profit booking by market participants.
However, according to market sources, the downfall in jeera price was limited as demand for export as well as in domestic side remained steady. At Unjha, medium quality jeera gained by Rs 15-20 to trade at Rs 2,420-2,520 per 20 kg on Friday, while best quality raw jeera stood at Rs 2,715-2,815 per 20 kg. Arrivals stood at 5,000 bags and traded around 6,000-7,000 bags.
Jeera for November delivery touched a low of Rs 14,225 and traded lower by Rs 42.50 at Rs 14,382.50 per 100 kg with an open interest of 16,641 lots on National Commodity and Derivatives Exchange (NCDEX).
NCDEX December jeera contract fell by Rs 45 to Rs 14,715 per quintal with an open interest of 8,913 lots. NCDEX accredited warehouses jeera stocks gained by 60 tonnes to 9294 tonnes.
According to Mumbai-based Kedia Commodity, Jeera prices remained weak as farmers increased their supplies in the spot market, taking advantage of the recent rise in prices, but fresh overseas enquiries supported prices.
"Downside appears limited on the heels of receding carryover stocks against strong demand from exporters. The export demand of jeera remained strong in local markets due to weak supplies from Syria and Turkey," Ajay Kumar Kedia of Kedia Commodity maintained.
The total jeera stocks are currently estimated at around 400,000-500,000 bags, down almost 300,000 bags from the last year in the same year.
Senior technical strategist of Lakshmishree Commodities said, "A breach of Rs 14,500 levels and if it sustains that level, jeera can head to Rs 15,500 in near term. It has been on falling volumes and the rally from the lows of Rs 13,500 is picking volumes near the breakout point, which is a clear sign of bullishness. We recommend a buy on Jeera November contract above Rs 14,500 for targets of Rs 15,500 initially which will be reviewed around Rs 15,500 levels. Traders should maintain stop below Rs 14,100 levels."
According to markets sources about 75 per cent exports target has already been achieved.
