Jeera falls on continued profit taking, demand high

India jeera futures extended the previous session's losses on Wednesday on continued profit-taking after prices rose over 9 % in the last seven session. The benchmark January jeera futures closed down 3.28 % at 16,151 rupees per 100 kg. Jeera prices have risen by more than a quarter in November supported by a dip in acreage that sparked lower crop worries and firm export demand.

Short term trend would depend on the weather aspects in these regions for the sowing aspects. Moderate rains and a fall in temperature can be beneficial for the crop. The initial reports had indicated the progress of sowing activities have been slow. Indian rates being reportedly lower than International ones from Turkey and Syria, traders are eyeing better exports in coming weeks

Domestic demand as well export demand is good for this spice. Indian rates are still at a discount as compared to Syria and Turkey which is also supporting the demand for Indian Jeera.

Trading Recommendations

NCDEX Jeera Dec HOLD. Buy on dips for a target of 16,675-90

Courtesy: AUM Capital Market Pvt. Ltd.

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