NCDEX Jeera under long liquidation; Resistance seen at 17330
Commodity Online | June 25 2019
UPDATED 11:50:02 IST

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Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 0.31% to settled at 6699 while prices down 130 rupees.

Now NCDEX Jeera is getting support at 17095 and below same could see a test of 17005 level, And resistance is now likely to be seen at 17330, a move above could see prices testing 17475.

Jeera on NCDEX settled down by 0.75% at 17185 on profit booking after prices gained from estimates of lower output this year.

According to third advance estimates by the government, India's cumin seed output in 2018-19 crop year is 5 lakh tons, down 36.3% from the previous year's production of 7.85 lakh tons.

The sentiments of the traders at the spot markets are positive due to heavy purchases being made by the exporters and wholesalers. Good news for India's cumin exporters is that its yield in Syria-where new crop usually comes in the middle of June- will be lower this year.

This means that overseas demand for jeera from India can remain strong in the foreign market for the coming few months.

According to third advance estimates by Government, India's cumin seed output in 2018-19 crop season is 5 lakh tons, down 36.3% than the previous year's production of 7.85 lakh tons.

Overall due to higher availability this season, exports demand will play a major role in prices movement. Jeera exports is up 4.6% on year in February at 10,186 tn compared to 9,736 tn last year while for Apr-Feb period it is up 23.2% at 1.57 lt, compared to last year, according to DGCIS.

In March 2019, close to 70,500 tonnes of cumin arrived in physical market.  In Unjha, a key spot market in Gujarat, jeera edged down by 25.65 Rupees to end at 17437.5 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 17005-17475.
--Jeera dropped on profit booking after prices gained from estimates of lower output this year.
--According to third advance estimates by the government, India's cumin seed output in 2018-19 crop year is 5 lakh tons.
--Good news for India's cumin exporters is that its yield in Syria will be lower this year.
--In Unjha, a key spot market in Gujarat, jeera edged down by 25.65 Rupees to end at 17437.5 Rupees per 100 kg.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Coconut Oil 30 15850.00
Arecanut 35 23000.00
Sugar 494 3232.00
Rubber 0.08 14500.00

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