Jeera futures on the NCDEX began the week on a negative note last week on expectation of increased sowing on the back of higher prices. However, the negative trend was shortlived and the prices recovered from the weekly low of ₹18,755 per quintal on fresh buying activities. Furthermore, good export demand from the US and Europe supported the positive sentiment in jeera future prices. The most active December futures closed the week at ₹19,840 per quintal, up by 5.2 per cent week-on-week while the January futures closed gaining 4.1 per cent.

Jeera prices at the spot market also gained on the back of strong demand as supply remained steady. At Unjha market, prices closed the week at ₹18,050 per quintal, up by ₹225 week-on-week and similar gains were seen in Rajkot, Gondal and Halvad markets. Most of the jeera producing regions have remained dry due to lack of rainfall and have turned hot in major regions such as Gujarat and Rajasthan. However, sowing activities are progressing at a steady pace. As on November 13, 2017, jeera is sown in 59,400 hectares which is 21 per cent of the normal area of 2,80,300 hectares.

Outlook Jeera futures are likely to extend their gains for the coming week. Prices may trade lower in the initial part of the week on the back of profit booking. However, the downtrend is likely to be limited. Prices are trading near their life-time high levels, hence cautious trading is recommended.

The writer is Head-Commodity Research, Karvy Comtrade

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