MCX Cotton under fresh selling; Resistance seen at 22430
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NCDEX Turmeric under fresh buying; Resistance seen at 6748
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Crude Oil market under short covering; Support seen at 4572
Technically NCDEX Jeera is getting support at 21000 and below same could see a test of 20740 level, And resistance is now likely to be seen at 21520, a move above could see prices testing 21780.
Jeera on NCDEX settled up by 0.71% at 21260 as there are apprehensions that moisture stress in major producing areas may impact sowing this season. Prices also seen supported on crop concern due to water shortage in producing centres of Gujarat and Rajasthan.
Sowing was expected to be higher due to prevailing high prices but lower rains in producing areas of both the states may impact the yield and overall output. Gujarat and Rajasthan are facing water shortage due to erratic monsoon rains.
The prevailing water crisis may curtail jeera sowing by about 25% from last year’s area of 780,000 hectares. Moreover, carryover stocks are seen lower at 200,000-300,000 bags less than the desirable 500,000 bags of 55 kg each.
India’s jeera exports have reached nearly to 130,000 tons until September during the current fiscal. However, jeera exports in 2018/19 (Apr-Aug) has crossed 1 lakh tonnes, up 54.8% compared to exports last year for same period as per data released by Commerce Ministry.
Seasonally, the exports of Jeera dip during the 4th quarter of the calendar year. However, those regions which have good irrigation facilities will have good output. According to the initial trade estimate, there may not be any increase in the sowing area of jeera because of dry weather.
The overseas demand for Indian jeera is expected to increase as the supply from other origins like Turkey and Syria are limited and of poor quality. In Unjha, a key spot market in Gujarat, jeera edged up by 110 Rupees to end at 20430 Rupees per 100 kg.
Trading Ideas:
–Jeera trading range for the day is 20740-21780.
–Jeera settled up as there are apprehensions that moisture stress in major producing areas may impact sowing this season.
–The prevailing water crisis may curtail jeera sowing by about 25% from last year’s area of 780,000 hectares.
–NCDEX accredited warehouses jeera stocks gained by 13 tonnes to 2914 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged up by 110 Rupees to end at 20430 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Commodityonline.com
