Jeera March futures prices witnessed huge volatility on mixed sentiments during Thursday’s trading session. Futures prices traded up during early trading session on cues from positive spot market activity.
However, later on prices turned negative at futures amid fresh selling on higher levels and futures prices ended in red.
Outlook
Jeera March futures prices are expected to continue the corrections during early trading hours. However, reports of cold wave conditions coming back in north India is creating crop concern across the spot markets. Therefore, prices at futures might recover later in the day on cues from spot market activity.
According to trade sources, cold wave conditions might not result in sever damage to the crop but if these conditions prevails for long than it might create damage to the mature crop
Arrivals at spot market of Unjha were reported around 3500-4000 bags against 3000-3500 (1 bag=60 Kg.)
As per the data released by Gujarat Agriculture Department, acreage under jeera has increased substantially to 3.70 lakh hectares till 23rd January as compared to the 2.45 lakh hectares in the last year
According to derivative analysis, prices have declined while volumes and open interest have increased. It indicates that new money is coming into the market, showing aggressive new short selling.
Courtesy: Karvy Commtrade Ltd.
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