NCDEX Jeera expected to trade 17120-18320 levels

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Jeera on NCDEX settled up by 3% at 17840 on hopes of good export buying in the coming months. Prices also seen supported due to tight stock position and hopes of fresh export deals though reports of higher sowing may check prices. The sowing of Jeera has started in Gujarat and Rajasthan which is expected to be good compared to last year due to good monsoon and higher price realization by farmers.

Prices also gained due to reports of robust demand from overseas buyers amid fall in output of other exporting nations Syria and Turkey. Continuous demand from Bangladesh and China has given a boost to exports of the spice As per market source, farmers in Gujarat, the top producer of the spice in India, planted rabi jeera over 366,000 ha as on Nov 14, compared with 180,000 ha a year ago, according to the state’s agriculture department. During 2016-17, until August, India exported about 63,797 ton jeera which is higher by 63% compared to last year export of 39,120 ton as per the data released by Department of Commerce.

Sowing of jeera has started and traders are expecting higher acreage due to high prices in the domestic market coupled with increased export. India imported around 2,550 ton jeera during Apr-Oct 28 as against negligible inĀ  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 short covering as market has witnessed drop in open interest by -0.5% to settled at 7788 while prices up 520 rupee, now Jeera is getting support at 17480 and below same could see a test of 17120 level, and resistance is now likely to be seen at 18080, a move above could see prices testing 18320.

Trading Ideas:
–Jeera trading range for the day is 17120-18320.
–Jeera prices gained on hopes of good export buying in the coming months.
–Prices also gained due to reports of robust demand from overseas buyers amid fall in output of other exporting nations Syria and Turkey.
–NCDEX accredited warehouses jeera stocks dropped by 57 tonnes to 929 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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