Fresh selling seen in NCDEX Jeera

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Jeera on NCDEX settled down by -2.11% at 17145 amid favorable climatic conditions on the back of good rains in Gujarat this year and expectations of higher sowing this year. However traders are hoping higher sowing this year because of attractive prices in the market. Last year stocks were 1298 tonnes in Jodhpur and 5291 tonnes in Unjha. According Department of commerce data, the exports of Jeera in the first five months (Apr-Aug) of 2016-17 is recorded at 60,907 tonnes, higher by 62% compared to last year same period.

The exports of jeera during August 2016 increase 65% m/m to 9,003 tonnes while there is also increase exports y/y by 65.7%. 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, report added. At New Delhi market estimated market supply was at 2000 quintals, steady as against previous day’s arrival. 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.

However, it is much lower than 2013-14 output when the state produced 346,000 ton jeera. In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 18218.75 rupee per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 8.19% to settled at 8802 while prices down -370 rupee, now Jeera is getting support at 16910 and below same could see a test of 16670 level, and resistance is now likely to be seen at 17520, a move above could see prices testing 17890.

Trading Ideas:
–Jeera trading range for the day is 16670-17890.
–Jeera prices dropped amid favorable climatic conditions on the back of good rains in Gujarat this year and expectations of higher sowing this year.
–However traders are hoping higher sowing this year because of attractive prices in the market.
–NCDEX accredited warehouses jeera stocks dropped by 9 tonnes to 1106 tonnes.
–In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 18218.75 rupee per 100 kg.

Courtesy: Kedia Commodities

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