NCDEX Jeera may trade in range of 17405-17935; Support seen at 17550
Commodity Online | September 20 2016
UPDATED 15:16:15 IST

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Jeera on NCDEX settled down by -0.34% at 17695 amid profit booking due to fall in demand from stockists and traders. Though, some losses were capped as the stocks are tight and lowest compared with recent years at the domestic spot market. Reports of lower output in other producing countries, Turkey and Syria will help the Indian exporters to clinch more export deals. 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.

As per fourth advance estimate of Gujarat State for 2015-16, jeera production is pegged at 238,000 ton as against 197,000 ton a year ago. However, it is much lower than 2013-14 output when the state produced 346,000 ton jeera. 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 China 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). In Unjha, a key spot market in Gujarat, jeera edged down by -183.35 rupees to end at 18266.65 rupee per 100 kg. Technically now Jeera is getting support at 17550 and below same could see a test of 17405 level, and resistance is now likely to be seen at 17815, a move above could see prices testing 17935.

Trading Ideas:
--Jeera trading range for the day is 17405-17935.
--Jeera prices ended with losses amid profit booking due to fall in demand from stockists and traders.
--Reports of lower output in other producing countries, Turkey and Syria will help the Indian exporters to clinch more export deals.
--NCDEX accredited warehouses jeera stocks dropped by 246 tonnes to 4421 tonnes.
--In Unjha, a key spot market in Gujarat, jeera edged down by -183.35 rupees to end at 18266.65 rupee per 100 kg.

Courtesy: Kedia Commodities