The cumin seed futures contract started the week on a fragile note, extending its weakness for the third consecutive week, tracking bearish fundamental factors. Absence of active consumption demand from domestic traders as well as exporters due to higher price had a bearish impact on the market. Besides, anticipation of higher acreage under cumin cultivation during ensuing sowing season led to a weaker trend during early trading days of the week.

However, in the later part of the week, the market recovered from its lows on account of short covering and emergence of fresh buying. Since the prices fell to a fresh low during the week, domestic as well as export demand emerged. Spot markets witnessed restricted supplies and were reluctant to sell the produce at lower prices. Further, active buying interest at lower price helped price recovery. The futures market thus ended the week on a positive note. The most active November contract cumin seed futures traded in a range of ₹16,100-16,940 per quintal and ended the week at ₹16,900 per quintal, registering a gain of 1.8 per cent over last week.

For the week ahead, cumin seed futures is forecast to trade on a positive note on extended buying from domestic traders as well as exporters. However, gains could be limited as the area under cumin seed cultivation may rise in this sowing season.

The writer is Head-Commodity Research, Karvy Comtrade

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