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Increasing arrivals in the spot market and profit-booking by traders resulted in jeera prices dropping on Thursday. According to analysts, the price may fall further as demand trails supply.
On the spot market in Gujarat, arrivals have increased from 20,000 bags to 25,000 bags in the last two days.
Jeera was traded at Rs 2,300-3,000 for 20 kg in Rajkot and Rs 1,730-3,300 at Unjha APMC. The price has slid over Rs 100 since Tuesday. On the National Commodity and Derivatives Exchange (NCDEX), jeera May contracts declined Rs 158 to Rs 15,000 a quintal with an open interest of 18,372 lots.
Similarly, June contracts decreased Rs 227 to Rs 15,500 with an open interest of 16,107 lots.
A Rajkot-based jeera trader said: “Increasing arrival is the main reason for the decline in prices. If current pace in arrivals continue, the price will decline further.”
According to analysts, future markets traders booked profit, dragging the price. The scenario is likely to repeat in the coming days as demand is lower in spot market.
Production in Gujarat and Rajesthan for 2011 is expected to be around 21 lakh bags and 7-8 lakh bags respectively.
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