NCDEX Jeera market under short covering

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Jeera on NCDEX settled up by 0.51% at 16640 as there is paucity of supplies while domestic buying may emerge. Sowing of jeera has started and traders are expecting higher acreage due to high prices in the domestic market coupled with increased export. Jeera output in other producing countries Syria and Turkey is anticipated to be lower which may help Indian exporters to ship higher quantity this fiscal. India imported around 2,550 ton jeera during Apr-Oct 28 as against negligible in the previous year. Traders are expecting jeera export during the current fiscal around 120,000 ton up from 98,700 ton last year. However traders are hoping higher sowing this year because of attractive prices in the market.

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. 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 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.

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 -5.37% to settled at 8775 while prices up 85 rupee, now Jeera is getting support at 16335 and below same could see a test of 16035 level, and resistance is now likely to be seen at 16900, a move above could see prices testing 17165.

Trading Ideas:
–Jeera trading range for the day is 16035-17165.
–Jeera prices gained as there is paucity of supplies while domestic buying may emerge.
–Sowing of jeera has started and traders are expecting higher acreage due to high prices in the domestic market.
–NCDEX accredited warehouses jeera stocks gained by 39 tonnes to 1097 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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