Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 1.84% to settled at 2157 while prices up 35 rupees.
Now NCDEX Jeera is getting support at 13535 and below same could see a test of 13395 levels, and resistance is now likely to be seen at 13790, a move above could see prices testing 13905.
Jeera yesterday settled up by 0.26% at 13680 gained on fresh buying as prices dropped sharply in the last few days on the report of higher acreage compared to last year, overall water availability in growing regions is sufficient that is supporting crops.
While upside will be capped as the coronavirus outbreak is giving industry the jitters, especially sectors dependent on Chinese imports such as consumer electronics, automobiles and pharmaceuticals.
Seafood and spices exports are also vulnerable as Beijing absorbs a big chunk of the $10-billion these shipments bring in every year. Spices, especially cumin and chilli, which are sold to China. “If it prolongs for the next two months, exports will be hit as the harvest of several rabi spice crops is in March-April. said Rajiv Palicha, chairman of the All India Spices Exporters’ Forum.
The slump in orders may lead to a dip in prices as well, he added. Jeera growers in Rajasthan and Gujarat are expecting about 25-30 per cent higher yield over last year.
As per the latest data from the Gujarat government on rabi sowing, there is a 40 per cent jump in area under jeera cultivation over last year, Cumin sowing gained around 40% with 488,207 exceeding the normal sowing area since last three years which was 336,305 hectares as on 27.01.2020.
Also on the export front things are not so good as exporters in the state are already feeling the pressure as most of the buyers have cancelled their orders due to the novel coronavirus outbreak there.
--Jeera trading range for the day is 13395-13905.
--Jeera gained on short covering as prices dropped sharply in the last few days on the report of higher acreage
--Indian exports have also suffered a setback due to the outbreak of the Coronavirus in China
--Despite sowing has been delayed by 2-3 weeks due to unseasonal rains in growing regions.
--In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 Rupees to end at 14343.2 Rupees per 100 kg.
Courtesy: Kedia Commodities