Jeera futures prices at NCDEX registered sharp gains during the week ending November 25, 2016. The futures market took positive cues from the strong demand at spot markets amid limited availability of jeera stocks. Demand was strong, especially from overseas market, on shortage in global supplies. Arrivals are limited in the market, post demonetisation, and hence limited trading activities were witnessed during the week. Most active jeera December futures closed the week at ₹18,770/quintal with sharp gains of 8.37 per cent while next month contract January futures closed the week with weekly gains of 8 per cent. At the Unjha spot market, arrivals reported were limited due to lack of cash while good demand was witnessed. Sowing of jeera commenced on a stronger note in Gujarat due to record prices during the marketing year of 2016-17. According to latest data, sowing in Gujarat, top grower of jeera, was at 991 hectares compared to 174 hectares last year.

Outlook For the week ahead, jeera futures is expected to continue its trade on a positive note. Demand is strong from the overseas market which will continue to support prices and help the contract trade higher. Supplies from other producing countries such as Syria and Turkey are limited and hence strong demand is emerging for the Indian variety.

The writer is Head- Commodity Research, Karvy Comtrade

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