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Profit booking pulled down jeera prices on Thursday in spot and futures trading.
On the National Commodity and Derivatives Exchange, jeera January contracts dropped by Rs 109 to Rs 14,023 a quintal, with an open interest of 5,436 lots. The decrease in February contracts, however, were been limited by Rs 52 to Rs 14,410 with an open interest of 15,102 lots. At Unja, mandi jeera traded at Rs 2,280-2,875 for 20 kg.
According to an Angel Commodities report, jeera spot as well as futures prices declined on account of weak demand from the domestic buyers. Buyers are adopting a wait-and-watch stance, expecting prices to soften further in the near term on the impending arrivals starting next week from regions such as Saurashtra that had sown the crop as early as September.
Production may fall
Production of jeera in 2011 is expected to be lower than the previous year and is likely to be 19-20 lakh bags (55 kg each) compared with 25 lakh bags in 2010. There are lower carryover stocks of jeera with other major producers such as Syria and Turkey.
Despite lower stocks with other major producers, buyers in the international market are closely monitoring prices of the Indian market as fresh arrivals will commence from end-January.
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