Fresh buying seen in Jeera, open interest up by 6.63%
Commodity Online | June 13 2016
UPDATED 15:42:09 IST

NCDEX Ref. Soya Oil under fresh buying; Support seen at 756

MCX Zinc under fresh buying; Support seen at 185.8

NCDEX Soyabean under fresh selling; Resistance seen at 3750

MCX Copper under short covering; Resistance seen at 462.7

MCX Natural Gas likely to move in a range of 178.5-190.5

Jeera on NCDEX settled up 0.81% at 16775 on restricted supply from the producing belts. Industrial buyers have already sourced sufficient quantity for the domestic requirements. Export demand may pick up as prices have been going down since last one month. In the next few months, the prices will depend on export demand. As per third advance estimate of Gujarat State for 2015-16, production pegged at 2.13 lakh tonnes (lt) higher by about 7 per cent forecasted in revised fourth advance estimate for 2014-15 at 1.97 lt.

In Rajasthan, jeera output expected to be lower this year, compared to last year due to hot weather and lower acreage. In the current financial year, jeera exports were lower until January compared to last year. According to Department of Commerce data, the export of jeera during first 11 month of 2015-16 (Apr-Jan) is 71,983 tonnes, compared to 1, 37,742 tonnes during the same period last year. However, exporters were active during February, March and April due to improve in quality supplies on favorable weather during the harvesting season in both Rajasthan and Gujarat. At Unjha market in Mehsana sources reported arrivals at 7000 quintals, down by 3000 quintals from previous day’s arrivals. At Rajkot market in Rajkot(Guj.), total arrivals are at 290 quintal, lower by 30 quintal from previous trading day.

At Anandpur Kalu(Raj.) market in Pali(Raj.), arrivals were reported at 10 quintals, up by 10 quintals from previous day’s arrivals. Technically market is under fresh buying as market has witnessed gain in open interest by 6.63% to settled at 16074 while prices up 135 rupee, now Jeera is getting support at 16570 and below same could see a test of 16365 level, and resistance is now likely to be seen at 16975, a move above could see prices testing 17175.

Trading Ideas:
--Jeera trading range for the day is 16365-17175.
--Jeera prices ended with gains on restricted supply from the producing belts.
--Export demand may pick up as prices have been going down since last one month.
--NCDEX accredited warehouses jeera stocks dropped by 39 tonnes to 3472 tonnes.
--In Unjha, a key spot market in Gujarat, jeera edged up by 83.85 rupees to end at 16853.1 rupee per 100 kg.

Courtesy: Kedia Commodities
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