NCDEX Jeera may trade in range of 17195-18145

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Jeera on NCDEX settled down by -0.79% at 17555 on sluggish demand at the spot markets of Rajasthan. Though, some losses were capped on expectation of pickup in export demand and lower supply from the producing regions. Reports of lower output in other producing countries, Turkey and Syria will help the Indian exporters to clinch more export deals. Expectations of good demand for the coming festive season may also support the upward price trend. In 2016- 17, the output of jeera is seen falling in other major producers Syria and Turkey to 10,000 ton and 12,000 ton respectively from 15,000 ton and 17,000 ton in 2015-16.

As per market source, India is likely to export 40,000-45,000 ton more jeera in coming months. As per fourth advance estimate of Gujarat State for 2015-16, jeera production is pegged at 238,000 ton as against 197,000 ton a year ago. According Department of commerce data, the exports of Jeera in the first three months (Apr-Jun) of 2016-17 is at 44,023 tonnes, higher by 71.7% compared to last year same time. In the first three months of new financial year, jeera exports has achieved about 46% of last year’s export volume due to good demand from China and Bangladesh.

In Jun country, exports 9,859 tonnes of jeera, which is lower by 52 %, compared to May (20,383 tonnes) but 39% higher y/y (7,064 tonnes). In Unjha, a key spot market in Gujarat, jeera edged down by -16.65 rupees to end at 18250 rupee per 100 kg. Technically, now Jeera is getting support at 17375 and below same could see a test of 17195 level, and resistance is now likely to be seen at 17850, a move above could see prices testing 18145.

Trading Ideas:
–Jeera trading range for the day is 17195-18145.
–Jeera prices dropped on sluggish demand at the spot markets of Rajasthan.
–Though, some losses were capped on expectation of pickup in export demand and lower supply from the producing regions.
–NCDEX accredited warehouses jeera stocks dropped by 30 tonnes to 4391 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged down by -16.65 rupees to end at 18250 rupee per 100 kg.

Courtesy: Kedia Commodities

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