NCDEX Jeera market under short covering

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Jeera on NCDEX settled up by 1.18% at 18405 due to expectation of tight supplies from the producing regions. Further, some fresh exports enquiries also added support to jeera prices uptrend. Jeera sowing in Gujarat and Rajasthan have started. In Gujarat, Jeera sowing completed in around 99,100 hectares as compared to last year acreage of 17,400 hectares.

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 same period last year. 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%.

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. In Unjha, a key spot market in Gujarat, jeera edged up by 393.75 rupees to end at 18612.5 rupee per 100 kg.

Technically market is under short covering as market has witnessed drop in open interest by -1.08% to settled at 7686, now Jeera is getting support at 18145 and below same could see a test of 17890 level, and resistance is now likely to be seen at 18590, a move above could see prices testing 18780.

Trading Ideas:
–Jeera trading range for the day is 17890-18780.
–Jeera prices ended with gains due to expectation of tight supplies from the producing regions.
–In Gujarat, Jeera sowing completed in around 99,100 hectares as compared to last year acreage of 17,400 hectares.
–NCDEX accredited warehouses jeera stocks dropped by 30 tonnes to 189 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged up by 393.75 rupees to end at 18612.5 rupee per 100 kg.

Courtesy: Kedia Commodities

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