NCDEX Jeera under fresh buying; Support seen at 13150
Commodity Online | May 21 2020
UPDATED 11:50:42 IST

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Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 4.95% to settled at 1464 while prices up 170 rupees.

Now NCDEX Jeera is getting support at 13150 and below same could see a test of 12980 levels, and resistance is now likely to be seen at 13420, a move above could see prices testing 13520.

Jeera yesterday settled up by 1.29% at 13315 on short covering after traders are still bracing for a continued slackness in offtakes as the Prime Minister talked about the fourth phase of the ongoing lockdown.

Further prices seen some pressure on an elevated crop. Despite a peak demand period, the operations of spices industry in many upcountry markets have been hit in the wake of a labour shortage.

Though the industry has to work in full swing prior to the onset of monsoon, their presence in the red zone area coupled with the departure of labour has affected the functioning of many spices industries especially in Maharashtra, Madhya Pradesh, Rajasthan, Delhi.

In Rajasthan, all jeera mandis are closed in protest against announcement of two percent farmer welfare tax on the purchase and sale of agricultural products.

Farmers are expecting nearly 30 per cent jump in jeera crop from 4,16,600 tonnes reported in 2019 to 5,35,500 tonnes this year, as projected by the Federation of Indian Spice Stakeholders (FISS) this year.

According to the Unjha APMC officials, the yard has suspended auctions indefinitely due to the coronavirus scare. There will be no jeera auctions at the APMC till the pandemic outbreak is brought under control. It is difficult to maintain social distancing during auctions.

Trading Ideas:
--Jeera trading range for the day is 12980-13520.
--Jeera recovered on short covering after prices dropped after traders are still bracing for a continued slackness in offtakes.
--Despite a peak demand period, the operations of spices industry in many upcountry markets have been hit in the wake of a labour shortage.
--Farmers are expecting nearly 30 per cent jump in jeera crop from 4,16,600 tonnes reported in 2019 to 5,35,500 tonnes this year
--In Unjha, a key spot market in Gujarat, jeera edged down by -50 Rupees to end at 13566.65 Rupees per 100 kg.

Courtesy: Kedia Commodities

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