Weak Fundamentals Drag Down Jeera 11-Feb-2014

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GSR-JEERAJeera futures pared the last three session’s gains as long liquidation emerged at higher levels triggered by strong crop estimations. The NCDEX Jeera for the March delivery ended the day at Rs 11,825, down Rs 165 or 1.38% from the last close.

As per the latest data release by Gujarat Agriculture Board, the total sowing acreage of Jeera in the state has been increased by 1.05 lakh hectares from the last year to reach 4.54 lakh hectares due to favorable weather conditions and strong export demand in local mandies. Traders estimated that the total production of the Jeera is likely to increase by 10 lakh bags to reach around 46 lakh bags in the current year. The strong carryover stocks in local mandies also added selling in Jeera market as traders estimated that around 5-6 lakh bags of Jeera has been reported in major producing areas, up almost 2-3 lakh bags from the previous year.

Jeera recovered by Rs 485 per quintal from nearly one and half year low of Rs 11675 per quintal. The counter failed to sustain above Rs 12,000 per quintal and ended the day at Rs 11,825, down Rs 165 or 1.38% from the last close. The open interest pared 60 tonnes to 6,645 tonnes, indicating profit taking.