NCDEX Jeera may trade between 14035-14415 levels
Commodity Online | April 20 2021
UPDATED 11:50:42 IST

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NCDEX Jeera may trade between 13710-14180 levels

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Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 1.79% to settled at 6414 while prices down 155 rupees.

Now NCDEX Jeera is getting support at 14120 and below same could see a test of 14035 levels, and resistance is now likely to be seen at 14310, a move above could see prices testing 14415.

Jeera yesterday settled down by 1.08% at 14210 as the second wave of Corona has weakened its export demand. Farmers are bringing cumin in the mandis of Gujarat and Rajasthan rapidly because they could not bring their produce to the mandis at the same time last year due to Corona wave.

This arrival pressure coupled with a weak demand from lockdown conditions put pressure on sentiment. Prices remained under pressure in recent sessions as there is pressure on the supply of new crops in the spot markets and demand will be affected due to the lockdown amid resurgence in corona virus cases in many countries.

Pressure seen after update in Gujarat and Rajasthan mandis, the arrival of cumin has increased by 65.28% during the current marketing year (February-January) 2021-22. Preliminary data showed for March 2021 showed jeera exports gained by 92% on year on year basis to 37,326 tons against 19,406 tons in March 2020.

In 2020 March exports of Cumin were less because of boarder tensions with China. According to the Union Government's Ministry of Consumer Affairs, the arrival of cumin in the mandis of Gujarat from 1 February to 31 March 2021 was 121063.57 tonnes while it was 79604.84 tonnes from February to 31 March 2020. In Unjha, a key spot market in Gujarat, jeera edged down by 21.9 Rupees to end at 14054.55 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 14035-14415.
--Jeera prices dropped as the second wave of Corona has weakened its export demand.
--Farmers are bringing cumin in the mandis of Gujarat and Rajasthan rapidly
--There is pressure on the supply of new crops in the spot markets and demand will be affected due to the lockdown
--In Unjha, a key spot market in Gujarat, jeera edged down by 21.9 Rupees to end at 14054.55 Rupees per 100 kg.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 4.5 18600.00
Coconut Oil 10 20750.00
Tamarind Seeds 13 1340.00
Tamarind 15 5000.00

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