Date : 05.03.2012
Jeera To Remain
Underpressure On Strong Production Estimates MAR 05
Selling might continue
in jeera futures on the back of strong production estimates of the current year
along with mounting supplies in major mandies . The NCDEX jeera futures are
likely to plunge further in the near term.
As per market sources,
the total production of jeera in the current year is likely in the range of
32-33 lakh bags (1 bag = 55 kgs ) against 28 lakh bags that were reported in
the last year . This is mainly due to strong sowing acreage along with better
productivity levels. The total production in Gujarat is likely at 12-13 lakh
bags while in Rajasthan is estimated at 10 lakh bags.
Moreover, the total
daily arrivals are likely to gain momentum from the second week of March, which
might also incite some selling in jeera futures. Currently, Unjha mandi,
Gujarat has reported the daily arrivals of around 14000-15000 bags which might
be augmented to 25000 bags in the next week.
However, traders are
expecting that the spot prices might gather some bargain buying at lower levels
in the wake of waning opening stocks coupled with strong export demand. The
total opening stocks at the beginning of the month were reported at 2 lakh
bags, down almost 4 lakh bags from the last year.
Consequently, the
NCDEX Jeera March Benchmark contract plunged by almost Rs 200 per quintal in
the last week to settle at Rs 13665 per quintal. Technically, prices are likely
to test Rs 13300-13400 per quintal at the downside while resistances are likely
at Rs 14100-14200 per quintal.
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