Jeera up on demand

COMMODITY SPIKES

Increased export inquiries coupled with rise in domestic demand has once again brought strong bullish sentiments into the jeera market.

During the last week, the near-month contract jumped by almost 10 per cent to Rs 13,590 a quintal against the previous week's close of Rs 12,388 on the National Commodity and Derivatives Exchange (NCDEX).

According to analysts, the level of Rs 14,000 is on cards this week. Second factor taking the market on the rise is depleting stock in the warehouses of NCDEX.

Last week, the stock fell to 4,473 tonnes, down 16 per cent from the previous week's 5,367 tonnes.

The arrival in Unjha (delivery centre) was reported to be around 2,500 bags (each of 55 kg), whereas the demand hovered at 3,500-5,000 bags a day.

The rates in the physical market in the last week rose by around Rs 175 to Rs 13,509 a quintal. Market observers said that crop damage in Turkey, Syria and Iran due to adverse weather led to higher exports inquires from India.

The country already has an overall shortage of around 30,000 tonnes. Last year's production was around 85,000 tonnes, whereas current year's estimates is 55,000 tonnes.