Jeera futures rise, hoarding indicated

KOCHI: Cumin or jeera futures have been hitting new peaks despite higher acreage in the main growing states and sluggish demand in export markets, indicating speculative hoarding by big players.

The contract for delivery in December has jumped more than 15% on the National Commodity and Derivatives Exchange ( Ncdex) over the last couple of weeks. It touched a high of Rs 221.45 per kg on Tuesday before slipping to Rs 219.80. The contract for delivery in January rose 10% to Rs 214.60 a kg.

“While small traders have already offloaded their stock, the big players are holding stocks fuelling speculation,” said Nimesh Vohra, an exporter. “Since they have large holding capacity, they may liquidate stock position only after the further price rise. The export demand has already slowed down.”

Commodity brokers said prices are due for the correction as they have met with resistance from buyers. “It could correct to Rs 210/ kg level,” said Ritesh Kumar Sahu, analyst at Angel Commodity Broking.