Jeera morale high on export demand

Fundamental Analysis

Benchmark Unjha prices of jeera were quoted at higher rates due to better offtakes. Futures witnessed improved buying at support levels by the market participants.

Demand from overseas market is expected in the coming days due to competitive prices. This may drive overseas buyers to the Indian nation.

In the short term (till November) prices may be determined by the lower stocks of jeera till the fresh crop arrivals in the month of March and demand from the domestic and overseas market. In the medium term (December) prices may be determined by the weather prevailing in the jeera growing areas.

Stocks of jeera in Syria, Turkey and India their price parity in the international market may determine the prices in the long term (December onwards).

Technical Analysis

Jeera prices (NCDEX December 09 Contract) closed at Rs.15,590/qtl up by Rs.150/quintal as compared to Tuesday’s close of Rs. 15,440/qtl.

Prices closed above its 10-Day and its 20-Day EMA indicating bullish trend.

Outlook

Jeera prices in the intraday may trade in sideways to up manner due to expected demand at the domestic market. In short term (till end of November) trend may be determined by the demand from the domestic and overseas market and price parity of the different origins in the international market. In the medium to long term (December onwards) prices may be determined from the Jeera sowing estimates of India and demand from the overseas market.

Courtesy: Angel Commodities

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