Jeera to stay range-bound

Commodity Spikes

Based on the fundamentals, the cumin seed (jeera) futures market is expected to continue on its recovery path next week. The commodity, which saw an unexpected plunge last week, recovered to an extent in the last two trading sessions. Market observers said the next week might be range-bound, with resistance at Rs 12,300 a quintal.

"Though bullish trend is inevitable in jeera, given the fact that production is substantially low this season, the coming week will see range-bound movement," said a commodity analyst. He added that the market would move between Rs 11,650 and Rs 12,300 a quintal. The row between traders and commodity exchanges on delivery specifications may lead to action.

Guarseed may firm up

Bulls may take control of the guarseed market following reports of a delayed monsoon in Rajasthan, the largest producer in the country. The commodity saw volatility last week, with the near-month contract reaching as high as Rs 1,783 and as low as Rs 1,732 a quintal. On Saturday, the futures market closed at Rs 1,749, up Rs 12, against the previous close of Rs 1,737 a quintal. According to commodity analysts, if the market price crosses Rs 1,775-1,780, the futures may cross the Rs 1,800 mark. Market sources suggest that fresh export orders are being booked for guargum, which could take guarseed prices up in Jodhpur and Bikaner mandis. Traders said the spot prices were steady on account of an increase in millers' demand.