Jeera up 2% on output concerns

Deficient monsoon in Gujarat, thin supplies influence prices

Jeera prices climbed 2% to Rs 16,610 per quintal in futures trade today as speculators built positions amid deficient monsoon in the key growing state of Gujarat and thin supplies in the market.

At the National Commodity and Derivatives Exchange, jeera for delivery in September surged by Rs 325, or 2%, to Rs 16,610 per quintal, with an open interest of 24,930 lots.

August jeera was up by Rs 292.50, or 1.85%, to Rs 16,115 per quintal, with an open interest of 4,215 lots.

"Deficient rain in key growing regions and festive season demand are supporting agri-commodities, including jeera", said an analyst.

 

Marketmen said besides the pick up in spot market demand for the festive season, weak rainfall in Gujarat, country's top jeera producer, which could hit sowing operations and crop output, influenced spice prices at futures trade.

Besides, thin supplies by farmers in the spot market also helped the price rise, they said.