Jeera seen firm

COMMODITY SPIKES

Last week, cumin seed (jeera) rallied by over Rs 700 a quintal on the back of rising demand in the local mandis and adverse weather conditions in Gujarat and Rajasthan, the major growing regions in the country.

The January jeera futures scaled up, and in the physical markets, prices witnessed a surge of Rs 5-7 a kg. Traders said this would sustain for the time being.

According to commodity analysts, there is still room for a further rise in prices. They said the market could go beyond the Rs 10,550 a quintal mark next week. Factors such as lower availability coupled up with surging demand from the northern part of the country and China are expected to keep the market firm.

Interestingly, the rally in the jeera market has come after a lull of over three weeks when the spot as well as the futures reeled under pressure on sluggish demand.

As per the initial market estimates, the country is expected to produce 18 lakh bags (each of 55 kg). Currently, the countrywide stock stands 2 lakh bags, which could be exhausted by the time the new crop arrives by mid-February next year.

On the National Commodity and Derivatives Exchange, the near month contract of jeera closed on Saturday at Rs 10,445 a quintal, up 7.38 per cent, against the previous week's close of Rs 9,727 a quintal.