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Jeera futures fell for a fourth straight session on Tuesday as speculators trimmed their positions due to rain in the top producing State of Gujarat. Besides, higher carryover stocks and a drop in spot demand also aided the trend.
Good rain is expected to improve moisture levels which, in turn, may increase prospects of better yield when sowing starts next month. Exporters are also avoiding buying at higher levels, and waiting for prices to correct.
On the NCDEX, jeera for September delivery slipped Rs 17.5 to Rs 14,330 a quintal. The spice for October and November deliveries stood at Rs 14,687.5 (down by Rs 37.5) and Rs 15,065 (down by Rs 55) respectively.
On the export front, supply concerns from Syria and Turkey still exist. Expectations are that export orders may still be diverted to India from the international markets due to cheaper availability.
Jeera of Indian origin is being offered at $28,000-28,500 tonne (c&f) in the international market.
Carryover stocks of the spice are pegged at 7-8 lakh bags compared with 4-5 lakh bags in the last year.
Although good rain and slack export demand have pulled down prices, the jeera counter is likely to witness a bounce back given the limited stocks in Syria and Turkey, whose crop is 30 per cent short as compared with last year.
In the spot market at Unjha (Gujarat), jeera was quoted at Rs 15,432.5 a quintal.
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