The Hindu Business Line : Profit booking continues in jeera

On the National Commodity and Derivatives Exchange, jeera August contracts declined Rs 20 to Rs 13,871 a quintal, with an open interest of 6,612 lots. September contracts fell Rs 14 to Rs 14,175, with an open interest of 15,435 lots. At the Unja mandi, the price dropped Rs 25-35 to Rs 2,161-2,651 for 20 kg.

A Mumbai-based analyst said: “Jeera futures was caught between lower arrivals and good monsoon in the major producing regions of Gujarat. But the overall sentiment looks bullish on the back of better quality of Indian jeera than the other countries as well as lack of supply in the market.”

Mr Ajay Kedia of Kedia Commodity said: “Fresh orders from overseas buyers tracking lower quotes of jeera in international market of Indian origin will provide support to the prices in short term. The higher prices in Syria currently trading at $3,300 due to crop failure and lower production estimates from Turkey expected to increase the export demand for jeera. Firmness in dollar against the rupee too supported the export prospects.”

According to him, the consumption is expected to increase from mid-August onwards due to upcoming festival season.

Production of jeera in 2010 is estimated around 2.9 million bags from 2.7 million bags in 2009.

Reuters reports: Jeera futures are likely to edge lower on Tuesday, analysts said. “Traders are covering long positions at every rise due to weakness in overseas demand. Bearish cues from other spices also weighed on sentiment,” said an analyst from Angel Commodities.