Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 0.33% to settled at 6414 while prices down 20 rupees.
Now NCDEX Jeera is getting support at 14510 and below same could see a test of 14445 levels, and resistance is now likely to be seen at 14620, a move above could see prices testing 14665.
Jeera yesterday settled down by 0.14% at 14575 as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
However downside seen limited as 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.
With the forecast of normal rains in the western region during September to November, the sowing of cumin seeds in Gujarat and Rajasthan may increase.
In 2021 (January-June), the country has exported more than 1.50 lakh tonnes of cumin as compared to 1.3 lakh tonnes in the same period last year.
Purchase of cumin seeds from African and Middle East countries will be diverted from other countries to India this year.
Recent estimates state that cumin production has slumped by 60% in Iran’s Razavi Khorasan Province due to severe drought and unusually cold weather coupled with an early spring.
Rainfall ranges 63% lower than last year this season so far. Temperatures ranged 3.1-0.4C (37.58-32.72F) lower between October 2020 and April 2021 than in the same period in 2019/2020 according to official statistics.
Extensive crop losses seen, the early onset of spring in February also caused serious damage to production. In Unjha, a key spot market in Gujarat, jeera edged down by 45 Rupees to end at 14355 Rupees per 100 kg.
Trading Ideas:
–Jeera trading range for the day is 14445-14665.
–Jeera settled down as adequate stock with traders and farmers may keeping prices under pressure at higher levels.
–However downside seen limited as the export of cumin is increasing continuously and in the coming days there are signs of increasing the export of cumin
–India’s cumin exports will increase due to less supply from Afghanistan-Syrian
–In Unjha, a key spot market in Gujarat, jeera edged down by 45 Rupees to end at 14355 Rupees per 100 kg.
Courtesy: Kedia Commodities
Source: Comodity Online
