Technically NCDEX Jeera is under fresh buying as market has witnessed gain in open interest by 3.7% to settled at 8319 while prices up 65 rupees.
Now Jeera is getting support at 16810 and below same could see a test of 16700 level, And resistance is now likely to be seen at 17000, a move above could see prices testing 17080.
Jeera on NCDEX settled up by 0.39% at 16915 on higher physical demand in domestic and overseas market. However upside seen limited amid with reports of higher acreage of cumin in the current season.
India's 2016-17 cumin output fell to 489,000 ton from 503,000 ton a year ago and as a result stocks with traders and farmers are stated to lower. Apprehensions of drop in supplies in the days may support prices to trade higher.
India jeera is stated to cheaper as compared to that of Syria and Turkey in global markets and is in good demand.
At present stock with traders and farmers is insufficient to meet the demand till February next year when new jeera crop will hit the markets. As per Gujarat Govt. normal Jeera sowing area around 280,300 hectares.
Current year area sowing around 130,100 hectares as compared to last year 99,100 hectares. Major zone wise area reported 4900 hectares in Kutch, North Gujarat 64,000 hectares, Middle Gujarat 11,800 hectares, Saurashtra 49400 hectares.
Higher prices and strong export demand are likely to prompt farmers to cultivate more cumin seed (jeera) this year, leading to an increase in its acreage.
Cumin seed acreage increasing by about 8-10 per cent in Gujarat and the bordering districts of Rajasthan in 2017-18, following attractive prices that the seed spice fetched farmers last year. In Unjha, a key spot market in Gujarat, jeera edged up by 88.35 Rupees to end at 20630 Rupees per 100 kg.
--Jeera trading range for the day is 16700-17080.
--Jeera prices ended with gains on higher physical demand in domestic and overseas market.
--However upside seen limited amid with reports of higher acreage of cumin in the current season.
--NCDEX accredited warehouses jeera stocks gained by 509 tonnes to 10085 tonnes.
--In Unjha, a key spot market in Gujarat, jeera edged up by 88.35 Rupees to end at 20630 Rupees per 100 kg.
Courtesy: Kedia Commodities