Jeera futures are likely to scale new contract highs on the account of possible decline in current year`s production along with limited supplies in local mandies. The NCDEX February futures to test 16200-16300 levels in the near term.
As per market sources, the current year jeera production is estimated at 45 lakh bags against 65 lakh bags of the last year. This is mainly on the account of crop diversification by farmers towards other crop and poor rainfall during October –November in Gujarat and Rajasthan.
Moreover, weak supplies of jeera in major mandies will also provide support to prices in the near term . The total daily arrivals of around 8-12 thousand bags have been reported in major mandies, down 2-3 thousand bags from the last week`s average daily arrivals.
The NCDEX February Jeera futures settled at Rs 16000 per quintal, up 0.38 percent in the last trading. The contract has made a new contract high of Rs 16255 per quintal in the last trading. The NCDEX futures added 11 percent in open interest indicating fresh buying by traders. Technically, fresh buying is likely to emerge from 15800-15860 levels, while supports at 16200-16300 levels in the near term.
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