As per expectations, Jeera futures traded on a positive note during Saturday’s trading session due to short covering amid lower arrivals to the major market at Unjha. Gain in spot rate by Rs.25 per quintal to Rs.11, 625 per quintal also assisting the recovery in prices.

However, continuity of weak export demand is limiting the upside movement in prices. The most active NCDEX April contract Jeera futures upon a slightly lower opening at 12025 levels, made an intraday high at 12150 levels, lower than the previous session’s high of 12170 levels.

It made an intraday low at 11990 levels and settled the day at 12045 levels, with a positive change of 0.14%.

Outlook

Jeera futures are expected to trade sideways to higher during the day due to continued short covering amid easing arrival pressure to the physical market.

Cumin seed prices are expected to recover once crop estimates will be available from Syria and Iran in April month

Syria and Iran crop comes to market at the same time by the month of June

Spot rate at the major market of Unjha has been steady around Rs 11600 per quintal as on Saturday
Average daily arrivals are hovering around 24,000-24,500 bags of 60 kg each at the major market of Unjha

For NCDEX April contract volume and open interest has gone down by 34.50% and 0.39%, respectively on Saturday, which indicates the continuity of downtrend

Stock position at NCDEX accredited warehouses is 6543 tonnes as on 19 March 2010, higher by 399 tonnes as compared to previous update

The final settlement price of March jeera futures contract expired on 19 March 2010 has been Rs.11,860 per quintal

The quantity allocated for delivery in March 2010 expiry is 1,956 tonnes

Courtesy: Kedia Commodities

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