Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 4 April 2013

Jeera Jeera May contract gained Rs 107.5 and settled at Rs 13325 per quintal tracking firm cues from the spot market and on a rise in export demand, though arrivals from the new season crop and expectations of higher output weighed on sentiment. Fresh export demand is coming for Indian jeera and this is supporting the upside. Daily supplies from the new season crop rose to 35,000-40,000 bags of 60 kg each from 22,000-25,000 bags in the second week of March at the Unjha market in Gujarat. The total arrivals slumped to 35,000 bags from 40,000 bags, while demand was seen around 40,000 bags. Better crop expectations and high arrivals in the market may turn the trend in near term. Good sowing reports from Gujarat and Rajasthan keeps the production prospects good. The trend in medium to long term trend looks bullish as exports are expected to pick up in coming months amidst lower production reports in Turkey and Syria. Indian production is expected at 28-30 lakh bags translating to more than 1.5 lakh tons this year. As per market sources, the spot mandies of jeera have reported the record arrivals of around 2.50 lakh bags in the last week . This was mainly due to ample carryover stocks of around 8-10 lakh bags of old jeera in local mandies along with anticipation of strong jeera production in the current year. The total arrivals slumped to 35,000 bags from 40,000 bags, while demand was seen around 40,000 bags. In Unjha, a key spot market in Gujarat, jeera gained 53.55 rupees to end at 13428.55 rupees per 100 kg. The contract made intraday low of Rs 13225 a kg and high of Rs 13380 a kg. Support for jeera is at 13240 below that could see a test of 13155. Resistance is now seen at 13395 above that could see a resistance of 13465.