NCDEX Jeera under fresh buying; Support seen at 15790
Commodity Online | December 11 2019
UPDATED 11:40:24 IST

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Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 4.84% to settled at  while prices up 25 rupees.

Now NCDEX Jeera is getting support at 15790 and below same could see a test of 15655 levels, and resistance is now likely to be seen at 16020, a move above could see prices testing 16115.

Jeera on NCDEX settled up by 0.16% at 15920 on short covering after prices dropped amid better sowing prospects and good monsoon rains in all the production areas.

However, incessant rains have increased the soil moisture levels in the production belts of Jeera which can delay the start of sowing by 10- 15 days for next marketing season crop.

Good rains in major growing regions of Gujarat and Rajasthan raised the prospects of higher area under the spice. As per market estimates, the production for the current year is seen higher by 20-25%. (year-on-year). Weak response was seen from buyers at the current price levels.

Higher production and continuous supply is capping the upside in prices. As per market reports, Buyers reported unresponsive in the spot market at higher prices level.

Export demand from China supported the physical prices earlier during the arrival season, however the prices could not sustain at those levels. Overall, Export demand remained steady.

Current year, Indian Jeera prices are mostly driven by export demand that is likely to shift to India as output in major producers Syria and Turkey is seen lower due to weather adversities.

Overseas demand has little slowed down as fresh arrivals have started in other major producing countries like Syria and Turkey. In Unjha, a key spot market in Gujarat, jeera edged up by 7.15 Rupees to end at 16407.15 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 15655-16115.
--Jeera gained on short covering after prices dropped amid better sowing prospects and good monsoon rains in all the production areas.
--However, incessant rains have increased the soil moisture levels in the production belts of Jeera which can delay the start of sowing by 10- 15 days
--There were fear that jeera output in Turkey has fallen to only 4,000 tons from normal output of 18,000 tons.
--In Unjha, a key spot market in Gujarat, jeera edged up by 7.15 Rupees to end at 16407.15 Rupees per 100 kg.

Courtesy: Kedia Commodities