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Technically Jeera market is under fresh selling as market has witnessed gain in open interest by 11.65% to settled at 5175 while prices down 130 rupees.
Now NCDEX Jeera is getting support at 19485 and below same could see a test of 19370 level, And resistance is now likely to be seen at 19730, a move above could see prices testing 19860.
Jeera on NCDEX settled down by 0.66% at 19600 on prospects of higher sowing this season. Sowing area of jeera may increase due to higher prices for farmers and good rainfall in major growing regions which will result in sufficient moisture levels.
Steep fall in rupee against the US dollar may have a bullish impact as higher export demand is expected. Meanwhile, reports on improved rains in the central Gujarat major Jeera producing area limited the upside.
Weak output in Syria and restricted global supply may also provide support to the rising trend. India exported 143,670 ton jeera during 2017-18 up from 119,000 ton a year ago due to increased demand from China and Bangladesh.
A trade body-The Federation of Indian Spices Stakeholders (FISS) – projected India’s 2017-18 jeera output at 6.92 million bags up 19% on year on the back of higher acreage and favourable weather.
As per trade information, crop damaged reported in Syria and Turkey due to heavy rainfall in June support Indian Jeera in International market. Quality wise (due to heavy rainfall) and price wise Indian Jeera more affordable than other producing country.
Lower Jeera supply reported in the spot market during the period, as stockists were holding back their stocks on expectations of higher prices in coming days. In Unjha, a key spot market in Gujarat, jeera edged down by 43.75 Rupees to end at 19500 Rupees per 100 kg.
Trading Ideas:
–Jeera trading range for the day is 19370-19860.
–Jeera prices ended with losses on prospects of higher sowing this season.
–Sowing area of jeera may increase due to higher prices for farmers and good rainfall in major growing regions.
–NCDEX accredited warehouses jeera stocks gained by 72 tonnes to 2683 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged down by 43.75 Rupees to end at 19500 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
