A series of regulatory measures and stiff margins have led to a sharp volatility in most agriculture commodity futures trading on Thursday.
Jeera for October contract on Thursday had opened lower at Rs 16,280 per quintal against the previous close of Rs 16,460. It hit a low of Rs 16,220, but recovered sharply to close at the day’s high of Rs 16,790.
Similarly, September contract hit the three per cent upper circuit, touched the day’s low of Rs 15,810 and closed at the day’s high of Rs 16,382 against the previous close of Rs 16,060.
Export demand for Indian jeera variety is low due to high prices compared to that of competing countries. However, supply concerns from Syria and Turkey are keeping the prices high at the futures market.
Farmers are holding back their produce to reap better prices. Spot prices in Unjha were down one per cent at Rs 16,294.
According to sources, arrivals on Thursday were about 4,000 bags (each bag weighs 55 kg) in Unjha, about 2,000 bags lower compared to the previous day while offtake stood at 3,000 bags.
Carryover stocks at the domestic market were expected to be about 7-8 lakh bags compared with 4-5 lakh bags in the same period last year.