NCDEX Jeera cools off from front-month delivery based rally

MUMBAI: Jeera futures on NCDEX (National Commodity and Derivatives Exchange) lost some of its gains on Thursday. Prices rallied by nearly 3 percent on Tuesday, on the back of delivery shortage as the November contract reached an expiry.

While the 397 tonnes of stock available for delivery corresponding to the November futures, open interest--reflecting intention of taking physical delivery of the commodity in last five days to contract expiry--rose to 897 tonnes. Prices have declined considerably since then and active January contract is currently trading near Rs 10,125 per quintal, down 2.5 percent from its Tuesday's high.

According to Mehul Agarwal, research analyst, Sharekhan Commodities, going forward, prices are expected to find support in Rs 10,000-9,840 range on the back of coming wedding season demand while fresh crop is expected to arrive in February-March. "Weak international demand, on the other hand, is expected to resist rally in prices," he added.