NCDEX Jeera under short covering; Resistance seen at 14715
Commodity Online | March 26 2020
UPDATED 11:50:25 IST

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Technically Jeera market is under short covering as market has witnessed drop in open interest by 4.38% to settled at 1899 while prices up 555 rupees.

Now NCDEX Jeera is getting support at 14220 and below same could see a test of 13890 levels, and resistance is now likely to be seen at 14715, a move above could see prices testing 14880.

Jeera yesterday settled up by 3.97% at 14550 as prices seen supported due to unseasonal rains after prices dropped amid rise in arrivals and 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.

Trading Ideas:
--Jeera trading range for the day is 13890-14880.
--Jeera gained as prices seen supported due to unseasonal rains after prices dropped amid rise in arrivals and 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