Support seen at 16283 for NCDEX Jeera

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Jeera on NCDEX settled down -3.44% at 16555 driven by easing domestic and exports demand in the spot market. Besides, good sowing prospects for jeera in Gujarat and Rajasthan are pressurising the prices, as the sowing season is about to commence. The 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%. The export demand going through a sluggish phase following reduced buying by China and Hanjin shipping company fiasco is expected to pick up in the coming months. 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. Technically market is under fresh selling as market has witnessed gain in open interest by 5.35% to settled at 9273 while prices down -590 rupee, now Jeera is getting support at 16283 and below same could see a test of 16012 level, and resistance is now likely to be seen at 17003, a move above could see prices testing 17452.

Trading Ideas:
–Jeera trading range for the day is 16010-17450.
–Jeera prices dropped driven by easing domestic and exports demand in the spot market.
–The jeera sowing in Gujarat and Rajasthan have picked up and anticipation of good harvest next season encouraging the stockists to sell their crop.
–NCDEX accredited warehouses jeera stocks dropped by 48 tonnes to 1058 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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