NCDEX Jeera market under short covering

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Jeera on NCDEX settled up by 3.03% at 17145 tracking a firm trend at spot market on rising domestic as well as exports demand. Besides, tight stocks position following lower supply from the producing belts too fuelled the uptrend. Reports of lower output in other producing countries, Turkey and Syria will help the Indian exporters to clinch more export deals. The stock position in NCDEX warehouse is at lower level compared to last year stocks. As on now, new Jeera stock position at NCDEX approved warehouses in Jodhpur is 57 MT and Unjha 1040 MT.

Last year stocks were 1340 tonnes in Jodhpur and 5330 tonnes in Unjha. Meanwhile, jeera sowing in Gujarat and Rajasthan have picked up and anticipation of good harvest next season encouraging the stockists to sell their old crop in the physical market. 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%. 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. 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 -4.89% to settled at 8346 while prices up 505 rupee, now Jeera is getting support at 16740 and below same could see a test of 16335 level, and resistance is now likely to be seen at 17410, a move above could see prices testing 17675.

Trading Ideas:
–Jeera trading range for the day is 16335-17675.
–Jeera prices ended with gains tracking a firm trend at spot market on rising domestic as well as exports demand.
–Reports of lower output in other producing countries, Turkey and Syria will help the Indian exporters to clinch more export deals.
–NCDEX accredited warehouses jeera stocks dropped by 36 tonnes to 1061 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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