NCDEX Jeera under short covering; Resistance seen at 15750

Technically Jeera market is under short covering as market has witnessed drop in open interest by 6.48% to settled at while prices up 90 rupees.

Now NCDEX Jeera is getting support at 15500 and below same could see a test of 15340 levels, and resistance is now likely to be seen at 15750, a move above could see prices testing 15840.

Jeera yesterday settled up by 0.58% at 15665 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. Exports of spices from India during Apr-Sep declined 8% on year to 780,273 tn, according to data from the Spices Board India.

In terms of value, exports rose 3% to 154.6 bln rupees. India exported 77,245 tn of turmeric in Apr-Sep, down 26% on year.

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 down by 81.25 Rupees to end at 15818.75 Rupees per 100 kg.

Trading Ideas:
–Jeera trading range for the day is 15340-15840.
–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.
–Spices Board pegs Apr-Sep jeera exports at 139,295 tn, down 14%
–In Unjha, a key spot market in Gujarat, jeera edged down by 81.25 Rupees to end at 15818.75 Rupees per 100 kg.

Courtesy: Kedia Commodities

Source: Comodity Online