Fundamental AnalysisJeera prices at Unjha are being quoted at steady rates due to slow trades at the domestic market. Jeera Futures continued their downtrend and made new contract low of 9944. Prices at the Spot may not dip sharply due to expected demand from the overseas market.
Prices at the Futures may witness further selling due to expectation of better crop for the year 2009. Buyers at the domestic market as well as overseas are reluctant to place fresh orders due to selling at the Futures.
Production of Jeera in the year 2009 is expected to be better due to good realization from the jeera crop of 2008. Thus, in the long term (Jan end to March 2009) trend may be determined from the jeera production estimates of 2009.
Having exported a large portion of the Jeera production of the year 2008, there are limited stocks available with the stockists at the domestic market. Thus, prices are expected to find support once the fresh orders are placed in good quantity.
Technical Analysis Jeera prices (NCDEX November Contract) closed at 10015 down by Rs.131/quintal lower than Wednesday’s close of 10146.
Prices closed below its 10-Day and its 20-Day EMA. Further downside towards 9800 levels may be seen in the coming days.
The 14-Day RSI is at 32.4 and is moving in sideways manner.
OutlookSelling by the market participants may keep Jeera prices sideways to down for the intraday. Medium to long term (end of October to December) trend still remains to be bullish as there are lower carryover stocks of Jeera with major producing nations.
Courtesy: Angel Commodities
