Jeera February futures prices continued the volatility on mixed sentiments on Tuesday. Futures stared the day on negative note extending previous day’s losses.
However, later on prices took smart recovery on lower level buying but failed to sustain the gains and ended on negative note.
Outlook
Jeera February futures prices are expected to continue the corrections during early trading hours. Uncertainty in actual production estimates is creating volatility on prices.
Shifting from current contract to far month contract is also increasing showing liquidation of position in current contract
Arrivals at spot market of Unjha were reported around 3500-4000 bags against 3000-3500 (1 bag=60 Kg.) including 80-100 bags of new crop
According to trade sources, in coming days fresh crop arrivals are likely to increase with start of peak arrivals season which might have negative impact on prices
As per the data released by Gujarat Agriculture Department, acreage under jeera has increased substantially to 2.82 lakh hectares till 27th December as compared to the 2.38 lakh hectares in the last year
According to derivative analysis, prices, volumes and open interest have declined. It indicates that traders have liquidated all their positions and it might create fresh buying opportunity
Courtesy: Karvy Commtrade Ltd.
Looking for a trading partner? visit commodityonline.com/franchisee
