Jeera futures ended the day with losses on long liquidation triggered y higher production anticipations. The NCDEX Jeera benchmark March contract ended the day at Rs 14,380, down Rs 135 or 0.93% from last close.
The spot Jeera quoted steady in the range of Rs 13,000-13,500 per quintal at Unjha mandi. The daily arrivals and demand stood steady 4,000 bags in Unjha mandi in Saturday's trading. As per latest data compiled by commodityinsights.com, the total production of Jeera in the current year is estimated at 34-35 lakh bags against 32-33 lakh bags that were reported last year. This is mainly on the account of strong production estimates of Gujarat. While the total carryover stock were estimated at around 8-9 lakh bags, unchanged from last year. Arrivals are weak in local mandis and export demand is likely to fetch in coming days as Syria and Turkey supply constraints exits. According to markets sources about 75% exports target has already been achieved due to a supply crunch in the global markets. Higher stocks for delivery on the exchange warehouses may pressurize prices. Jeera is grown as a rabi crop in India and it is also grown well in sub-tropical climate too, best suited for sandy soil. It requires less water and more cold for its better growth with ideal temperature of 25 to 30 degree. The area under coverage and climate condition is very crucial for the yield of the crop. Jeera crop is highly sensitive to rain, if rain occurs during harvesting time (February to March) quality of the Jeera will be badly affected besides quantity damage (due to fungal diseases).
Jeera March contract plummeted 10% from December last week high to the low Rs 14,340 today. The contract ended the day at Rs 14,380, down Rs 135 or 0.93% from last close. The open interest dipped 12 tonnes to 13,356 tonnes, indicating liquidations.
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