MUMBAI (Commodity Online): Jeera futures continued its upsurge Thursday owing to insisting strong demand both from domestic and overseas markets amid receding arrivals in the spot market.
NCDEX jeera January futures moved further higher Rs 207 or 1.30 percent to Rs 16090 and now quoted at Rs 15992, up 0.68 percent over last close. The open interest in the contract dropped 0.80 percent to 8,931 tonnes, indicating short covering and volume traded as of now stood at 927 tonnes.
The December futures rose further 1.22 percent to new high of Rs 15749 with the open interest added 3.31 percent. The counter now quoted at Rs 15650 and volume traded as of now stood at 1,488 tonnes.
Technically, the support for jeera is at 15455 below that could see a test of 15319. Resistance is now seen at 15683 above that could see a resistance of 15775.
Start trading in commodities from as low as $50. Join nowAs expected, India Jeera futures traded steady on Wednesday afternoon as pressure from profit-taking, after prices rose close to 15 % in the last eight sessions, was offset by support from robust demand.
The December Jeera contract closed up 0.68 % at 15,590 rupees per 100 kg. Prices were also supported by firm export demand for the spice as Syria and Turkey continue to quote at a premium to Indian prices.
Traders expect demand to remain firm especially on the export front. Exports have been reported from European and Mid-East countries and Singapore. Expectations of further rise in exports are there. Short term trend would depend on the weather aspects in these regions for the sowing aspects. Moderate rains and a fall in temperature can be beneficial for the crop.
On an average there is daily export demand of 540-600 tonnes. For which active buying is being done in the physical markets and it is supporting the rise in prices. Pace of sowing is slow for this rabi season spice. It is expected that acreage will remain more or less same as per last year data of 3.5 lakh hectares.
