Jeera futures have witnessed strong buying from lower levels due to sowing concerns in Gujarat along with weak stocks in local mandies. The NCDEX futures added more than 1% today.
As per the market sources, the total sowing acreage of jeera in Gujarat is likely to witness some decline in the current year due to crop diversification by jeera cultivators. Most of the jeer cultivators in Saurashtra (includes districts such as Ahmedabad , Amreli and Surendranagar ) are likely to move towards mustard seed and groundnut crop in the current year for better price realization. Therefore, weak sowing acreage in Gujarat will reduce the total jeera supplies in the coming season.
The spot prices also supported by fragile carryover stocks in major mandies. The latest data compiled by commodityinsights.com reveals that the total carryover stocks of jeera are currently estimated at 8 lakh bags against 10 bags of the last year. Therefore, receding carryover stocks in the major mandies of Gujarat have provided steady support to physical market.
The NCDEX December futures increased by 1.59% today to settle at Rs 12912 per quintal. The NCDEX futures added 0.10% in open interest indicating fresh buying by traders.
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