Jeera stays glued to lower circuit on fall in demand
Jeera prices are under pressure as there are good arrivals in the market while demand is low. Price of jeera in spot market is trading high against the future prices at NCDEX.
By NIDHI SHARMA, TNN |
MUMBAI: Jeera prices are under pressure as there are good arrivals in the market while demand is low. Price of jeera in spot market is trading high against the future prices at NCDEX.
Jeera October contract on NCDEX hit a lower circuit on Thursday and it was down by over 4% at Rs 11,240 per quintal. On Friday, jeera September contract fell by 2.6% at Rs 10,701 per quintal. Jeera spot prices, however, are trading in the range of Rs 120-Rs 124 per kg.
Unjha based jeera trader Praveen Patel said that there was selling pressure on lack of demand and hovered around at Rs 124 per kg. “We expect the prices in spot to further go down to Rs 100 per kg,” he said. Currently 4,000 bags (one bag consists 60 kg) are arriving at the Unjha mandi.
“Good rains in Gujarat and Rajasthan have triggered bearish sentiments for jeera,” said Mr Patel. Jeera sowing starts from October and November and the crop arrives by January. Faiyaz Hudani from Kotak Commodity Services said that long liquidation or covering of positions took place in jeera. “Prices are expected to further go down as supply is more than enough to cater demand,” he said.
Jeera exporter, Kirandip Swani said that jeera prices have been hammered down due to negative sentiments in other spices like pepper, turmeric.
Jeera is produced mainly in Gujarat and Rajasthan but still the Rajasthan production was being sent to Unjha mandi in Gujarat. NCDEX earlier had one delivery centre at Unjha and from this year NCDEX added their second delivery centre at Jodhpur.
Issues pertaining to jeera quality delivered at Jodhpur in Rajasthan have also cropped up though NCDEX chief business officer Shrikant Subbarayan denied it saying that there are no such quality issues.
Unjha based traders said that jeera that is being delivered at Jodhpur delivery centre is not of good quality and that is why it is priced below the Unjha spot market price.
A Jodhpur-based jeera trader, however, said that there are no quality issues at the delivery centre in Jodhpur and the prices in Unjha spot market are high for the export quality jeera.
Jeera October contract on NCDEX hit a lower circuit on Thursday and it was down by over 4% at Rs 11,240 per quintal. On Friday, jeera September contract fell by 2.6% at Rs 10,701 per quintal. Jeera spot prices, however, are trading in the range of Rs 120-Rs 124 per kg.
Unjha based jeera trader Praveen Patel said that there was selling pressure on lack of demand and hovered around at Rs 124 per kg. “We expect the prices in spot to further go down to Rs 100 per kg,” he said. Currently 4,000 bags (one bag consists 60 kg) are arriving at the Unjha mandi.
“Good rains in Gujarat and Rajasthan have triggered bearish sentiments for jeera,” said Mr Patel. Jeera sowing starts from October and November and the crop arrives by January. Faiyaz Hudani from Kotak Commodity Services said that long liquidation or covering of positions took place in jeera. “Prices are expected to further go down as supply is more than enough to cater demand,” he said.
Jeera exporter, Kirandip Swani said that jeera prices have been hammered down due to negative sentiments in other spices like pepper, turmeric.
Jeera is produced mainly in Gujarat and Rajasthan but still the Rajasthan production was being sent to Unjha mandi in Gujarat. NCDEX earlier had one delivery centre at Unjha and from this year NCDEX added their second delivery centre at Jodhpur.
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Issues pertaining to jeera quality delivered at Jodhpur in Rajasthan have also cropped up though NCDEX chief business officer Shrikant Subbarayan denied it saying that there are no such quality issues.
Unjha based traders said that jeera that is being delivered at Jodhpur delivery centre is not of good quality and that is why it is priced below the Unjha spot market price.
A Jodhpur-based jeera trader, however, said that there are no quality issues at the delivery centre in Jodhpur and the prices in Unjha spot market are high for the export quality jeera.
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