NCDEX Jeera may trade in range of 17335-18255 ; Resistance seen at 17980

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Jeera on NCDEX settled down by -0.76% at 17705 on late profit booking after prices gained due to good buying support from retailers and stockists at the spot market.  However expectation of fresh export enquiries from Bangladesh and China amid restricted arrivals from growing regions limited the downside. Moreover, the stock positions with the exchange and stockists are also diminishing. Jeera sowing in Gujarat and Rajasthan have started.

In Gujarat, Jeera sowing completed around 36,600 hectares as compared to last year same period 18,000 hectares, as on 14th Nov. 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%. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -2.62% to settled at 7584 while prices down -135 rupee, now Jeera is getting support at 17520 and below same could see a test of 17335 level, and resistance is now likely to be seen at 17980, a move above could see prices testing 18255

Trading Ideas:
–Jeera trading range for the day is 17335-18255.
–Jeera prices dropped on late profit booking after prices gained due to good buying support from retailers and stockists at the spot market.
–Moreover, the stock positions with the exchange and stockists are also diminishing.
–NCDEX accredited warehouses jeera stocks dropped by 186 tonnes to 743 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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