Jeera Futures in NCDEX prices are gained the early trade on export demand and shed most of the gains on higher arrivals, ended nearly steady on Tuesday. Farmers and stockiest are off loading their stocks, which has pull down the spot prices. Arrivals in the physical market were about 3,000 bags, compared with about 2,000 bags last week.
A likely rise in output due to favourable weather in the main growing states was weighing on prices. Open interest for November contract rose to 10,491 tonnes from 9,846 tonnes the previous session. According to the Spices board, Jeera exports more than doubled in April-Aug on strong demand from Middle East and European countries, the country exported about 21,250 tonnes during the period compared with 8,260 tonnes a year ago.
India will celebrate Durga Puja and Diwali, both major Hindu festivals, when demand for spices usually increases. Spot jeera was trading at 11,370 rupees per 100 kg, down by Rs 17 in Unjha, a major trading hub in Gujarat.
Influencing Factors: Weak spot market
Profit booking
Stockiest Selling
Hopes domestic demand will improve
Bargain-hunting buying
Higher arrivals in spot market
Fall in exchange stocks
Firm export demand
The Jeera output of Syria is expected to fall by 20%
Output estimated at 18-20 lakh bags compared to 15 lakh bags in last year
The country exported about 21,250 tonnes during the period compared with 8,260 tonnes a year ago
Technical Outlook Technically Jeera October closed below 9 day EMA and 21 day EMA.
Today’s Recommendation NCDEX Jeera October buy above 10690
SL below 10550, targets 10760, 10845, 10960
Courtesy: JRG Wealth Management
