Commodity Trading Tips for Jeera by Kedia Commodity

Ajay Kumar Kedia 18 July 2013

Jeera Jeera yesterday settled down -0.42% at 13565 on higher domestic supplies and slack demand from local buyers. Domestic demand is not picking up. Rains have also raised the prospects of better sowing. Demand fell in the mandis for Jeera as trading got adversely affected due to the adverse weather conditions in Gujarat and Rajasthan. Moderate export queries however supported the Spot rates to some extent. Sentiments, however, are expected to remain firm as the demand is expected to pick up in near term as the skies clear up. In Unjha mandi ~8000 bags arrival was seen and demand remained at ~7000 bags. India may have exported over 20,000 tons of jeera during April-May 2013 period, as per market sources. India may become a leading jeera exporter due to persisting political tensions in Syria and Turkey. Supply concerns from these two major exporting countries are still exist. Also, cumin crop failure in Iran as a result of bad weather is expected to support Indian cumin seed market in the long term. India's cumin seed exports increased by 76% to 79,900 tons in 2012-13 when compared to 45,500 tons in the previous year. India is the biggest cumin seed producer in the globe, followed by Syria and Turkey. The total Jeera production is seen around 34-35 lakh bags in the current year, up almost 1-2 lakh bags from the last year. This is mainly due to sowing in Rajasthan and better recovery of Jeera from Gujarat. Due to the ongoing geo-political tensions in Syria and Turkey. In Unjha, a key spot market in Gujrat, jeera edged down by -42.85 rupees to end at 13712 rupee per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by % to settled at while prices down -57.5 rupee, now Jeera is getting support at 13491 and below same could see a test of 13417 level, And resistance is now likely to be seen at 13658, a move above could see prices testing 13751.