MUMBAI (Commodity Online): Jeera futures expected to drop on Friday due to higher sowing progress form the producing regions amid weak demand from the overseas buyers.
In NCDEX jeera January contract closed on Thursday lower by 0.97 per cent to Rs.14089 per quintal against the previous close.
Very high volatility was noted for Jeera as some export queries reportedly kept prices firm during morning hours. The higher levels were not sustainable how-ever as traders waited for corrections for fresh demand, according to Religare Commodities.
According to Gujarat farm ministry, area sown under jeera till December 13, 2011 stood at 2.32 lakh hectares (lh) up 26.68% as compared to last year. Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year.
Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. (Each bag weighs 55 kgs).
According to Spices Board of India, exports of Jeera during April 2011-Ocotber 2011 stood at 20500 tonnes as compared to 19,800 tonnes in 2010-11, an increase of 3.5%.
