Jeera futures that were seen rallying last week, traded in the red on Tuesday owing to higher arrivals, slack spot demand and higher carryover stocks.
On the NCDEX, jeera for October delivery was down by Rs 305 at Rs 14,927.5 a quintal. The November and December contracts declined by Rs 295 and Rs 285 to Rs 15,150 and Rs 15,520 respectively.
Trimming of positions by speculators on expectations of better sowing due to a revival in rains later in the season, were the main trigger for the fall in prices.
Good rains in Gujarat have improved sowing prospects ahead of the rabi season. Arrivals in the key market of Unjha are projected at 8,000 bags (of 55 kg each), up from 5,000 bags on Monday.
In the Unjha spot market at Gujarat, prices of the spice rose despite rising arrivals. Jeera was quoted at Rs 15,137.5 a quintal.
Overseas trend: About 75 per cent of the export target has already been achieved due to a supply crunch in the global markets. Around 10 lakh bags of jeera are exported across India. Supply concerns from Syria and Turkey still exist making India a hot destination for buyers.
Jeera of Indian origin is being offered in the international market at $2,775 a tonne (c&f), while Syria and Turkey are not offering. According to the Spices Board of India, exports of jeera in April stood at 2,500 tonnes as compared to 2,369 tonnes in April 2011.
Carryover stocks of the spice are expected to be around 7-8 lakh bags (4-5 lakh bags), while production in 2011-12 is expected to be around 40 lakh bags (29 lakh bags).