Jeera on NCDEX settled down by -1.53% at 17350 on late profit booking after prices gained on emergence of domestic and export buying amid tight stocks and dwindling supplies. Pressure also seen as sowing of jeera is likely to increase this year because of prevailing high prices. Export demand is expected to pick up as Indian Jeera is trading at discount to Syria and other exporting nations. Jeera export recorded a growth of 55% at 41,000 ton due to increased shipment to China, according to Spices Board data. 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 bankruptcy of Hanjin shipping company also led to delay in shipments affecting exports. 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. 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 Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 17466.65 rupee per 100 kg. Technically now Jeera is getting support at 17180 and below same could see a test of 17005 level, and resistance is now likely to be seen at 17660, a move above could see prices testing 17965.
–Jeera trading range for the day is 17005-17965.
–Jeera dropped on late profit booking after prices gained on emergence of domestic and export buying amid tight stocks.
–Pressure also seen as sowing of jeera is likely to increase this year because of prevailing high prices.
–NCDEX accredited warehouses jeera stocks dropped by 209 tonnes to 1623 tonnes.
–In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 17466.65 rupee per 100 kg.
Courtesy: Kedia Commodities