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Sunday, January 16, 2022

NCDEX Jeera under short covering; Resistance seen at 16125

Technically Jeera market is under short covering as market has witnessed drop in open interest by 11.44% to settled at while prices up 120 rupees.

Now NCDEX Jeera is getting support at 15690 and below same could see a test of 15460 levels, and resistance is now likely to be seen at 16125, a move above could see prices testing 16330.

Jeera yesterday settled up by 0.76% at 15925 as domestic demand is now picking up also the export inquiries to support price. There were reports cumin seed sowing picked up in Gujarat and Rajasthan.

The area under cumin in Gujarat is only 63,144 hectares as against 1.68 lakh hectares at the same time last year, while in Rajasthan 1.75 lakh hectares have been sown under cumin. Pressure also seen as adequate stock with traders and farmers may keeping prices under pressure at higher levels.

Jeera production in Syria and Turkey was limited due to bad weather, which increases demand for Indian cumin. As of now Exports of Jeera for Apr-Aug was down by 12% Y/Y at 1.24 lakh tonnes but expected improve in coming months as Rupee weakness will support exports.

During last two months, the prices were higher compared to last year despite sufficient stocks with traders. Sowing can see drop as farmers preferred to have other crop against Jeera. Weather in key sowing area will be crucial in next few months.

The export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin in a big way. In Unjha, a key spot market in Gujarat, jeera edged up by 184.6 Rupees to end at 16076.9 Rupees per 100 kg.

Trading Ideas:
–Jeera trading range for the day is 15460-16330.
–Jeera ended with gains as domestic demand is now picking up also the export inquiries to support price.
–There were reports cumin seed sowing picked up in Gujarat and Rajasthan.
–The area under cumin in Gujarat is only 63,144 hectares as against 1.68 lakh hectares at the same time last year
–In Unjha, a key spot market in Gujarat, jeera edged up by 184.6 Rupees to end at 16076.9 Rupees per 100 kg.

Courtesy: Kedia Commodities

Source: Comodity Online

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