Jeera may firm up on demand

COMMODITY SPIKES

Arrivals are on the decline, with Unjha (main delivery centre) witnessing a supply of 8,000 bags (55 kg each) and offtake outpacing supply at 9,000 bags. Moreover, stocks across the major centres in the country are low and there is good buying interest from both local and export markets.

Last week, July futures of the commodity showed some weak signs but bounced back in the later half of the week. Major global producers such as Syria and Turkey have seen acreage under jeera shifting to poppy seeds and even the weather conditions are reported to be adverse for jeera this year.

The global export demand has shifted to India. The country this season has produced 25 lakh bags (each of 55 kg) this year against 20 lakh bags last year. Next week, the July futures is expected to see a resistance at Rs 11,730 a quintal. This level is likely to be breached and the prices could reach up to Rs 11,900 a quintal, analysts say. On the downside, the support is expected at Rs 11,160 a quintal.

Broking firms are keeping a call of buy at every fall. On Ncdex, the July futures of jeera closed on Saturday at Rs 11,488 a quintal against the previous week's closing price of Rs 11,524 a quintal.