Jeera futures may slip again

The jeera futures contract traded on the NCDEX recovered from its four-week sharp fall of over 9 per cent during the week ended December 30, 2016. Most active January futures contract started the week on a positive note and witnessed a bullish trend for almost all of the week. Good export enquiries for Indian jeera supported the prices.

Due to lack of supplies from other producing countries such as Syria and Turkey, demand for the Indian variety was good, despite higher prices. January futures made a high and low of ₹17,890 per quintal and ₹16,835 per quintal during the week before closing at ₹17,855 per quintal, higher by 5.82 per cent from its previous week’s close. However, weekly gains in next month March contract were lower at 3 per cent as prospects of higher production of jeera capped the gains. Sowing is progressing at a steady pace in Gujarat, the top grower of jeera. As per the latest sowing data released by the Gujarat government, jeera is cultivated on 2,67,100 hectares compared to 2,68,300 hectares as on December 26, 2016.

Outlook

For the week ahead, jeera futures is expected to trade on a weak note. Good progress of sowing in Gujarat is expected to weigh down prices. However, good export demand for the spice may cap major loss in the contract.

The writer is Head-Commodity Research, Karvy Comtrade

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