NCDEX Jeera under short covering; Support seen at 16770
Commodity Online | August 23 2019
UPDATED 11:50:01 IST

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Technically Jeera market is under short covering as market has witnessed drop in open interest by 5.36% to settled at 5667 while prices up 80 rupees.

Now NCDEX Jeera is getting support at 16770 and below same could see a test of 16625 levels, and resistance is now likely to be seen at 17010, a move above could see prices testing 17105.

Jeera on NCDEX settled up by 0.48% at 16920 on short covering after prices dropped due to sufficient availability and prospects of good crop next season. However upside seen limited because of high moisture content in the spice, due to rainfall in the key producing areas of Gujarat.

Parched land of Gujarat got good rains recently and soil moisture along with higher prices will motivate farmers to grow jeera on higher area in the ensuing season. As per data arrivals of jeera in Gujarat is about 30,000 tn during 1-30 July compared to 7,500 tn last year same period.

As per Commerce Ministry data, the Jeera exports down to 18,165 tn compared to 22,000 tn last year in June. Overall, the export of Jeera has dropped 6.4% in the first quarter of FY20 to 71,000 compared to 75,800 tn in the same period last fiscal.

Cooler weather and rains in Gujarat and Rajasthan during Dec-Jan too were good for the crop. The recent weather disturbance in North-West India could support prices in case crop is damaged.

Jeera exports are 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 Unjha, a key spot market in Gujarat, jeera edged down by 24.1 Rupees to end at 17316.65 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 16625-17105.
--Jeera gained on short covering after prices dropped due to sufficient availability and prospects of good crop next season.
--However upside seen limited because of high moisture content in the spice, due to rainfall in the key producing areas of Gujarat.
--Parched land of Gujarat got good rains recently and soil moisture along with higher prices will motivate farmers to grow jeera on higher area
--In Unjha, a key spot market in Gujarat, jeera edged down by 24.1 Rupees to end at 17316.65 Rupees per 100 kg.

Courtesy: Kedia Commodities

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