The Hindu Business Line : Jeera prices may rule weak in short term

"There have been a few export enquiries but deals are not materialising as other origins such as Afghanistan, Syria and Turkey are at offering lower price."

Mumbai , March 11

SPOT prices of jeera may rule weak in the short term on expectation of an increase in supplies against low buying interest.

Spot prices at the Unjha centre(Gujarat) were ruling around Rs 75-78 a kg on Friday depending on quality. Prices rose nearly 10 per cent or by Rs 7-8 a kg last month and have reacted at the higher level in last three days, after a continous rally. Prices came down by just Rs 1-2 a kg this week on increased inflows, a trader said.

"The market has turned volatile for the past few days. Stockists are currently away from the market and they are waiting for a bout of fall in prices," a local broker said.

Fresh arrivals at Unjha centre have touched15,000-18,000 bags (each of 60 kg) a day and are likely to touch 20,000 bags in the next few days.

New arrivals in Rajasthan were expected to begin this month end , after Holi festival, market sources said.

"Domestic seasonal demand is continued but limited," a Gujarat-based broker said.

"There have been a few export enquiries but deals are not materialising as other origins such as Afghanistan, Syria and Turkey are offering at lower price," an exporter said.

Gujarat and Rajasthan are the major producers of jeera in the country.

Jeera crop in Gujarat is expected to fall to around 77,500 tonnes during the current season 2004-05 as against 94,400 tonnes in 2003-04, according to information available from Department of Agriculture, Gujarat.

However, crop size in Rajasthan is not yet known, as there are reports of crop damage to some extent due to hailstorm and unseasonal rains.

"Futures prices at NCDEX and MCX are ruling higher on reports of some crop damage and in anticipation of lower crop in Gujarat and Rajasthan," a local broker said.

Jeera May contracts at MCX were quoted at Rs 84 a kg on Friday during intra-day while the same contracts at NCDEX ended at Rs 8,622 a quintal on Thursday.

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Jeera prices may rule weak in short term