Jeera to retain flavour

Jeera futures prices registered sharp gains last week on active buying by traders. Increase in export demand from China and Bangladesh due to limited supplies from other producers supported price gains.

Further, tight supplies at the production centres due to decline in production amid steady domestic consumption helped prices. The most active jeera futures contract tested its lifetime high of ₹20,145 per quintal before closing at ₹19,990, up 8.08 per cent over the previous week.

Unjha market resumed trading after a closedown for 8-9 days on issues related to GST; however, supplies were limited. Prices gained by ₹575 per quintal over the previous week to ₹17,700 per quintal at Unjha market while at Jodhpur market prices ended at ₹16,005, up by ₹565 over the previous week. Jeera stocks at NCDEX warehouses as on July 13, 2017, were at 1,385 tonnes, up by 99 tonnes over the previous week.

Outlook

For the week ahead, jeera futures is expected to continue to trade positively, tracking bullish sentiments in the market. However, prices are likely to witness a brief correction in the early part of the week. The fundamentals of strong export demand and concerns of supplies at the spot markets are expected to keep the positive trend in prices intact.

The writer is Head-Commodity Research, Karvy Comtrade

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