Jeera on NCDEX settled down by -0.2% at 17320 tracking lower demand from the physical market. The physical demand is not picking up as per expectation as the stocks are dwindling. In the next few months, the prices will depend on export demand, which is expected to pick up. According Department of commerce data, the exports of Jeera in the first three months (Apr-Jun) of 2016-17 is at 44,023 tonnes, higher by 71.7% compared to last year same time.
In the first three months of new financial year, jeera exports has achieved about 46% of last year’s export volume due to good demand from Vietnam and Bangladesh. In Jun country, exports 9,859 tonnes of jeera, which is lower by 52 %, compared to May (20,383 tonnes) but 39% higher y/y (7,064 tonnes). As per 4thadvance estimate of Gujarat State for 2015-16, production is pegged at 2.38 lt compared to 1.97 lt in 2014-15. In 2013-14, production was 3.46 lt. In 2016- 17, the output of jeera is seen falling in other major producers Syria and Turkey to 10,000 ton and 12,000 ton respectively from 15,000 ton and 17,000 ton in 2015-16.
As per market source, India is likely to export 40,000-45,000 ton more jeera in coming months. At Rajkot market in Rajkot(Guj.), sources reported arrivals at 160 quintal, higher by 25 quintal from previous day’s arrivals. In Unjha, a key spot market in Gujarat, jeera edged up by 22.75 rupees to end at 18122.75 rupee per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -1.25% to settled at 14442, now Jeera is getting support at 17245 and below same could see a test of 17170 level, and resistance is now likely to be seen at 17430, a move above could see prices testing 17540.
--Jeera trading range for the day is 17170-17540.
--Jeera prices ended with losses tracking lower demand from the physical market.
--The exports of Jeera in the first three months (Apr-Jun) of 2016-17 is at 44,023 tonnes, higher by 71.7% compared to last year.
--NCDEX accredited warehouses jeera stocks dropped by 60 tonnes to 4268 tonnes.
--In Unjha, a key spot market in Gujarat, jeera edged up by 22.75 rupees to end at 18122.75 rupee per 100 kg.
Courtesy: Kedia Commodities