Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 16 April 2013

Jeera Jeera May contract dropped Rs 327.5 and settled at Rs 13480 per quintal as rising supplies from the new season crop and expectations of higher output weighed on prices. Export demand is good for Indian origin jeera mainly from Dubai. Almost negligible supplies from Syria and Turkey due to internal unrest and lower crop is diverting demand to India. India exported about 524,690 tonnes of spices during April-December, estimates by the ministry of commerce showed, indicating exports in the financial year ended March 31 were likely much higher than the previous year. Traders are expecting that the total production of jeera in the current year is expected to be around 34 -35 lakh bags, up 1 lakh kg bags from the last year. This is mainly due to better crop productivity in some areas of Gujarat and quality is poor in Rajasthan. Jeera ended with gains as rise in domestic demand and improved export queries are supporting the prices. 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. Indian production is expected at 28-30 lakh bags translating to more than 1.5 lakh tons this year. Jeera crop is about to get harvested and the major growing areas are witnessing comfortable weather as harsh winter fades away. However, spot prices could rise in near term if the weather turns frosty. In Unjha, a key spot market in Gujarat, jeera dropped -36.95 rupees to end at 13750 rupees per 100 kg. The contract made intraday low of Rs 13265 a kg and high of Rs 14040 a kg. Support for jeera is at 13150 below that could see a test of 12820. Resistance is now seen at 13925 above that could see a resistance of 14370.