Commodities

Profit taking crushes jeera futures

Our Correspondent Rajkot | Updated on March 03, 2011

jeera

Jeera futures crashed on the NCDEX as market participants continued to book profits. Moreover, lower export demand and increasing arrival put pressure on prices.

On the National Commodity and Derivatives Exchange, jeera for March delivery decreased Rs 688 or four per cent to Rs 16,512 a quintal, with an open interest of 9,258 lots. Jeera April contracts were down Rs 692 to Rs 16,985 with an open interest of 17,478 lots.

Jeera was traded at Rs 2,000 to Rs 3,600 a 20 kg in Unjha APMC. However, it traded in gain by Rs 60 in spot market.

Local demand

According to Kedia Commodity, jeera dropped on rising supply from the new crop and weak exports.

An Angel commodity report said: “Jeera spot prices were quoted higher owing to better offtake by local stockists, although futures ended four per cent lower owing to liquidation by market participants.”

Exports of jeera during April 2010-January 2011 plunged 36 per cent and stood at 26,000 tonnes compared with 40,800 tonnes in the same period a year ago. At Unjha, a key spot market for jeera in Gujarat, arrivals from new crop have risen to 6,000-7,000 bags of 55 kg each against 2,500-3,000 bags during the start of the season.

The NCDEX accredited warehouses jeera stocks rose 39 tonnes to 9,888 tonnes.

Published on March 03, 2011

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