Jeera futures on the National Commodity & Derivatives Exchange (NCDEX) on Wednesday hit 2% upper circuit mainly on reports of lower supplies, uncertainty over crops in Syria and Turkey supported by reduced inflows in Unjha centre.
NCDEX jeera May contracts were traded higher at Rs 12,165 on Wednesday over the previous day?s close of Rs 11,914 per quintal, up by 2.10% on reports of bad weather in the major producing regions. Report on the production front from Turkey, Syria and Iran is likely to have a short term impact on the prices.
?There are mix reports of jeera crops from Syria and Turkey. Weather in these countries would be deciding factor to determine the jeera prices in the next few days. Futures prices gained some momentum on Wednesday on some short coverings,? Faiyaz Hudani, analyst, Kotak Commodities said.
Spot prices at Unjha were Rs 55 higher to trade at Rs 12,050 per quintal over previous day on limited buying interest. Daily arrivals were steady around 4,000 bags at the Unjha mandi.
?India is the only supplier of jeera in the international market which has stocks as compared to other origins and demand for export is good,? Jayesh Patel, a trader based in Unjha said.
It can be noted that futures prices continued to rule lower over past two days on the fear of imposition of additional margin on jeera due to high volatility as imposed on sugar, soya bean and turmeric.
?Weather in the Syria and Turkey would be crucial to determine the Jeera prices as the crop would be in the seed formation stage. Excessive rains would damage the crop. This may support the prices to strengthen,? analyst with Angel Commodities said.
There are reports that Syria and Turkey jeera crops are expected to be better for the year 2009. But still weather in Syria and Turkey till mid of May would have impact on the growth of jeera market, he said.
Total export targets for Jeera have been surpassed and during April-February period and exports reached to 31,000 tonne valued at Rs 323.32 crores over set target of 28,000 tonne valued at Rs 275 crore, as per latest reports form Spice Board.