Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 6.27% to settled at 6057.
Now NCDEX Jeera is getting support at 16980 and below same could see a test of 16855 level, And resistance is now likely to be seen at 17290, a move above could see prices testing 17475.
Jeera on NCDEX settled down by 0.73% at 17100 on higher domestic output and weak demand from millers due to forecast of near normal monsoon forecast by IMD. Soybean arrivals for the Oct-Mar period are pegged at 77 lt, up by 23.2% on year by SOPA.
It expects availability of soybean for crushing, direct use and exports of about 101.8 lt as against 86 lt last year. SEA forecast soybean output at 102.43 lt in 2018/19, up more than 23% y/y. In the US, soybean inventories have swelled as the U.S.-China trade has hurt shipments of American soy to Chinese buyers.
China instead made purchases from Brazil. Moreover, the trade war between the US and China also disrupted US soybean to China. Brazilian consultancy Celeres expect the country’s 2018/19 soybean crop to total 115.8 mt, up 2 mt from their prior projection.SOPA expects availably of soybean for crushing, direct use and exports about 101.8 lt as against 86 lt last year.
USDA raised its estimate of Brazil's 2018/19 soybean harvest to 117 million tonnes, up from 116.5 million in March and at the top end of a range of analyst expectations as per the Second Advance Estimates for 2018-19 crops released by Ministry of Agriculture, Soybean production is estimated higher by 20 per cent at 136.89 lakh tonnes as compared to 113.90 lakh tonnes produced during 2017-18. In Unjha, a key spot market in Gujarat, jeera edged up by 50.6 Rupees to end at 17133.95 Rupees per 100 kg.
--Jeera trading range for the day is 16855-17475.
--Jeera dropped on profit booking after prices gained due to the increase in the export demand, with the possibility of lower production
--Cumin seed production in Syria and Turkey is estimated to decline, Syria production is estimated around 25,000 tonnes this year
--Production of Jeera in Gujarat in 2018-19 is expected to be lower by about 25 percent to 2.23 lakh MT compared to last year’s.
--In Unjha, a key spot market in Gujarat, jeera edged up by 50.6 Rupees to end at 17133.95 Rupees per 100 kg.
Courtesy: Kedia Commodities