NCDEX Jeera likely to trade between 17910-18520 range

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Jeera on NCDEX settled up by 1.42% at 18195 on expectations of fresh export and domestic buying. Expectations of higher sowing area under jeera due to higher prices limited the upside. Sowing of jeera for rabi season has started in slower pace and is expected to pickup intensely in the coming days. In the global market, jeera production is expected to witness a decline in other major producing countries such as Syria and Turkey. India imported around 2,550 ton jeera during Apr-Oct 28 as against negligible in the previous year.

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. However, it is much lower than 2013-14 output when the state produced 346,000 ton jeera. 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 up by 883.35 rupees to end at 18350 rupee per 100 kg. Technically now Jeera is getting support at 18050 and below same could see a test of 17910 level, and resistance is now likely to be seen at 18355, a move above could see prices testing 18520.

Trading Ideas:
–Jeera trading range for the day is 17910-18520.
–Jeera prices ended with gains on expectations of fresh export and domestic buying.
–India imported around 2,550 ton jeera during Apr-Oct 28 as against negligible in the previous year.
–NCDEX accredited warehouses jeera stocks dropped by 93 tonnes to 1382 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged up by 883.35 rupees to end at 18350 rupee per 100 kg.

Courtesy: Kedia Commodities

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