NCDEX Jeera under fresh buying; Resistance seen at 14675
Commodity Online | July 24 2020
UPDATED 11:50:22 IST

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NCDEX Jeera under fresh selling; Resistance seen at 14140

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Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 0.7% to settled at 1719 while prices up 125 rupees.

Now NCDEX Jeera is getting support at 14455 and below same could see a test of 14320 levels, and resistance is now likely to be seen at 14675, a move above could see prices testing 14760.

Jeera yesterday settled up by 0.86% at 14595 on likely fall in arrivals in the coming weeks as most farmers are engaged in sowing Kharif crops.Higher production in the current year and slow pace of demand is capping the upside in prices.

Bulk buyers who usually build-up their inventories during the peak harvest season are now buying on demand and need basis due to financial problems and uncertainty due to coronavirus. Demand from the domestic and overseas markets has declined.

It generally remains subdued during monsoon because of higher moisture content in the spice. On the export front, India exported 2.14 lakh tonnes in 2019-20 (April- March) rise of 17% from the same period of last year.

India exported around 0.19 lakh tonnes of Jeera in March 2020 which is 17% lower than March 2019 at 0.23 lakh tonnes. However, in March 2020, Jeera exports reported at 0.19 lakh tonnes, have been 58% higher than 0.12 lakh tonnes recorded in the previous month.

International jeera prices have fallen, hovering in the range of $1,780-1,800 (FOB rates) per tonne, about 35-40 per cent lower than what was quoted in the same period last year.

Trading Ideas:
--Jeera trading range for the day is 14320-14760.
--Jeera gained on likely fall in arrivals in the coming weeks as most farmers are engaged in sowing Kharif crops.
--Higher production in the current year and slow pace of demand is capping the upside in prices.
--Bulk buyers who usually build-up their inventories during the peak harvest season are now buying on demand and need basis.
--In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 Rupees to end at 14050 Rupees per 100 kg.

Courtesy: Kedia Commodities