Jeera February contract dropped Rs 174 and settled at Rs 14452 per quintal weighed by higher output estimates.
As per latest monthly release from Spice Board of India, During April-November 2011, 26,500 tonnes of Cumin valued Rs.379.24 crores was exported as against 20,750 tonnes valued Rs.248.79 crores last year registering an increase of 28 per cent in quantity and 52 per cent in value.
Moreover, weak production estimates in the current year might also add some buying in Jeera futures. Traders mentioned that the total Jeera production is likely at 24-25 lakh bags in the current year, down almost 4-5 lakh bags from the last year.
This is mainly on the account of some supply concerns in major producing regions of Rajasthan.
Jeera is cultivated during winter from October to December and harvesting starts from February.
According to Spices Board of India, exports of Jeera during April 2011-November 2011 stood at 26500 tonnes as compared to 20,750 tonnes in 2010-11, an increase of 27.7%.
In Unjha, a key spot market in Gujarat, Jeera gained 100 rupees to end at 14981.25 rupees per 100 kg.
The contract made intraday low of Rs 14357 a kg and high of Rs 14818 a kg. Support for jeera is at 14267 below that could see a test of 14081.
Resistance is now seen at 14728 above that could see a resistance of 15003.
Trading Ideas:
Jeera trading range for the day is 14081-15003.
Jeera ended with weak node weighed by higher output estimates
Total Jeera production is likely at 24-25 lakh bags in current year, down almost 4-5 lakh bags from last year
NCDEX accredited warehouses jeera stocks dropped by 87 tonnes to 6112 tonnes.
In Unjha, a key spot market in Gujarat, jeera gained 100 rupees to end at 14981.25 rupees per 100 kg.
Courtesy: Kedia Commodities
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