Support seen at 16135 for NCDEX Jeera

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Jeera on NCDEX settled down by -0.15% at 16255 due to fall in domestic as well as export demand at the spot market. Moreover, reports of good sowing prospects for jeera in the producing belts of Gujarat and Rajasthan too fuelled the downtrend. Though, some losses were capped on expectation of pickup in demand after Diwali.

The export demand going through a sluggish phase following reduced buying by China and Hanjin shipping company fiasco is expected to pick up in the coming months. Indian cumin is priced $200 lower than the stock in Syria and Turkey at $2500 per tonne but there are no takers with China going slow on purchase. The bankruptcy of Hanjin shipping company also led to delay in shipments affecting exports.

The political turmoil in Syria and the depletion of stocks in that country and Turkey, which are the two major producers of cumin after India, could lead to a shift in demand to India in the coming months. At Rajkot market in Rajkot(Guj.), sources reported arrivals at 78 quintal, up by 18 quintal from previous trading day.

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 Unjha, a key spot market in Gujarat, jeera edged down by -18.55 rupees to end at 17172.2 rupee per 100 kg. Technically now Jeera is getting support at 16135 and below same could see a test of 16015 level, and resistance is now likely to be seen at 16350, a move above could see prices testing 16445.

Trading Ideas:
–Jeera trading range for the day is 16015-16445.
–Jeera prices dropped due to fall in domestic as well as export demand at the spot market.
–Moreover, reports of good sowing prospects for jeera in the producing belts of Gujarat and Rajasthan too fuelled the downtrend.
–NCDEX accredited warehouses jeera stocks dropped by 114 tonnes to 2899 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged down by -18.55 rupees to end at 17172.2 rupee per 100 kg.

Courtesy: Kedia Commodities

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