Jeera below Rs 10,000 levels on low demand

The cumin seeds prices have declined to the lowest levels of the season because of poor demand from both domestic and exports markets.

Marketmen and commodity analysts foresee no immediate improvement in the situation and expect the market to continue with its downward rally in the days to come.

Since the beginning of the current week, the futures market has slipped below the Rs 10,000 a quintal mark. This level was last touched in February this year, when arrivals were about to hit the market.

But poor output due to adverse weather conditions in major growing states of Gujarat and Rajasthan led the commodity to over Rs 14,000 levels.

"Short-term fundamentals are very bearish. As it has already breached the Rs 10,000 level, we expect it to find support at Rs 9,500. However, the trend seems very weak. In case, the new support is breached, market will dip all the way to Rs 9,000 a quintal," said Faiyaz Hudani, analyst at Kotak Commodity.

Reports suggest that daily arrival in Unjha market (main delivery centre) has declined to 1,500-2,000 bags (each of 55 kg) this week against the average arrival of 2,500-3,000 bags witnessed during last month. However, offtake has also dropped by over 70 per cent to 1,500 bags from 4,500-5,000 bags a day.

According to trading sources, farmers are reluctant to bring their stocks to the market owing to poor offtake. Meanwhile, buyers are also not active in anticipation of further fall in prices. Across the Unjha mandi, stocks fell to 7-9 lakh bags against last year's 15 lakh bags.

"Despite the ongoing festive season, demand is not gaining momentum. The demand at present is not good enough to bring any upward rally in cumin seeds market for the time being," said Sudha Acharya, analyst tracking spices at Agriwatch Commodities.

However, on the spot front, the market remains steady. "Demand is fluctuating on a daily basis. The present prevailing rate is between Rs 90 and Rs 110 a kg (Rs 9,000-11000 a quintal).

Last few days witnessed sluggish demand but on Thursday it has corrected a little bit," said Jayesh Patel, a Unjha-based trader. On the National Commodity and Derivatives Exchange, the contract for October delivery on Thursday closed at Rs 9,638 a quintal up 0.18 per cent against the previous close.