Jeera to trade weak

COMMODITY SPIKES

The decline in demand from overseas and domestic markets is expected to dent the jeera market this week. The jeera futures, which showed a firm trend in a major part of the previous week, closed below the support level of Rs 13,000 a quintal on Saturday. Commodity analysts expect the low offtake from the physical market to pull the prices further down to Rs 12,500.

The September jeera contract on the National Commodity and Derivatives Exchange (NCDEX) opened weak on Monday, but crossed Rs 13,500 a quintal in the two subsequent trading sessions. However, a drastic fall in offtake from 10,000-12,000 bags to 3,000 bags, of 55 kg each, stoked bearishness in the market. Faiyaz Hudani, an analyst at Kotak Commodities, said, “Last week’s support of Rs 13,000 a quintal has become a resistance now. The market can even go down to as low as Rs 12,000 a quintal.”

According to a report by Angel Commodity, the participation of stockists has come down and buyers are reluctant to place fresh orders due to high volatility.