Technically Jeera market is under short covering as market has witnessed drop in open interest by 8% to settled at 1242 while prices up 205 rupees.
Now NCDEX Jeera is getting support at 14035 and below same could see a test of 13855 levels, and resistance is now likely to be seen at 14345, a move above could see prices testing 14475.
Jeera yesterday settled up by 1.46% at 14220 on short covering after prices dropped a forecast of a bigger crop this season.
In recent session prices remained under pressure on prospects of higher crop due to a sharp rise in acreage in Gujarat and Rajasthan and favourable weather conditions across growing regions has brightened crop prospects.
In the 2019-20 rabi season, Jeera acreage in Gujarat, 2020 is reported at 4.88 lakh hectares, higher by 40% from 3.47 lakh hectares a year ago.
The recent sharp fall in the spice commodity is because of the coronavirus outbreak in China, which is the largest buyer of the spice commodity from India. China is expected to buy about 50,000 tonnes this year on account of increased consumption.
This year, the trade was excited because of our attractive prices and hoped that the Chinese demand would increase. The coronavirus definitely has caused a dent in demand. Usually, the Chinese visit personally to choose and verify the quality of their order.
Notably, favourable climatic conditions and improved water availability following good monsoon rains had brightened the prospects for jeera. Farmers in the top growing States of Rajasthan and Gujarat expected about 25-30 per cent higher yield leading to a larger crop this year.
--Jeera trading range for the day is 13855-14475.
--Jeera gained on short covering after prices dropped amid a forecast of a bigger crop this season
--In the 2019-20 rabi season, Jeera acreage in Gujarat, 2020 is reported at 4.88 lakh hectares, higher by 40% from 3.47 lakh hectares a year ago
--Farmers in the top growing States of Rajasthan and Gujarat expected about 25-30 per cent higher yield leading to a larger crop this year.
--In Unjha, a key spot market in Gujarat, jeera edged up by 105.55 Rupees to end at 13655.55 Rupees per 100 kg.
Courtesy: Kedia Commodities