NCDEX Jeera expected to trade 18110-19100 levels

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Jeera on NCDEX settled up 1.98% at 18770 on the back of lower arrival in the mandis and fresh export demand. Demand increased from exporters and against it supply was tight at producing centres which lifted up jeera prices. At Unjha mandi of Gujarat, about 1,200 bags arrived. At Rajkot market in Rajkot (Guj.), sources reported arrivals at 220 quintal, lower by 70 quintal from previous day’s arrivals. At New Delhi market total arrivals are at 1500 quintals, higher by 1500 quintals as against previous day. India’s jeera exports rose 36% on year to 73,000 tn in Apr-Oct as demand from overseas buyers was robust and output in other significant exporting nations dried up.

The country had exported 53,800 tn of the commodity in the same period last year, according to Spices Board India. Traders pegged jeera exports in November to be around 7,000-8,000 tn. Indian-origin jeera is being sold at around $2,400- $2,500 per tn, free on board, in international markets. Exports have remained unaffected despite domestic demand taking a hit after the government withdrew currency notes of higher denominations.

Exporters see jeera exports in 2016-17 (Apr-Mar) rising to around 100,000-120,000 tn from 98,700 tn reported by Spices Board India last year. Syria, Turkey and China are the other major producers of jeera globally, but geopolitical uncertainties in Syria and lower output in the other two countries have left India being the key supplier in the global market.  Technically market is under fresh buying as market has witnessed gain in open interest by 0.86% to settled at 7752 while prices up 365 rupee, now Jeera is getting support at 18440 and below same could see a test of 18110 level, and resistance is now likely to be seen at 18935, a move above could see prices testing 19100.

Trading Ideas:
Jeera trading range for the day is 18110-19100.
Jeera prices gained on the back of lower arrival in the mandis and fresh export demand.
Current year Jeera sowing completed around 36600 hectares as compared to last year same period 18000 hectares.
NCDEX accredited warehouses jeera stocks dropped by 15 tonnes to 174 tonnes.
In Unjha, a key spot market in Gujarat, jeera edged up by 187.5 rupees to end at 18800 rupee per 100 kg.

Courtesy: Kedia Commodity

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