Home BusinessJeera futures prices likely to firm up
Jeera future prices are likely to firm up in January as there is a possibility for renewed export demand in the market. The demand from overseas market is expected from first week of January 2010 and this may support the price to strengthen.
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“Jeera futures are likely to rise as the market will see demand from overseas countries in January. The price may go up by Rs 1000-2000 per quintal from the present level”, said Amar Singh, head commodities research, Angel Broking.
"If price of jeera in futures market falls below Rs 14,000, it may further plummet to Rs.12000 level. But in present condition jeera price is unlikely to lose ground due to factors such as production and export. Overall trend is looking bullish," he stated.
Carry over stock is also almost half compared to last year. According to Angel research, jeera production in India in 2009-2010 is about 21 lakh bags (each bags containing 60 kg) and carryover stock of jeera is expected to be around 5-7 lakh bags. Last year production was 25 lakh bags and carryover was 12 lakh bags.
Exporters have some different view on it. Exporters say that the actual demand for export will start from February. Currently, domestic demand is driving the market.“Export will start when new crop comes to market. The prices will not rise suddenly. In present condition futures market will not affect spot market”, said Minesh Patel of Famous Export Import Pvt. Ltd. based in Unjha.“Jeera output this year will be around 35 lakh bags, including carry over and other stocks. The production stood at 42-45 lakh bags last year,” he added.