Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Jeera Jeera yesterday settled down -1.03% at 13182.5 due to expectations of higher sowing on ample rainfall in Gujarat, the top producer. The trend remains weak in jeera because area under cultivation is expected to rise amid ample rains. Gujarat has received above average rainfall so far in the monsoon season. Jeera is a winter crop sown from October and farmers depend on rains to moisten the land for sowing. Higher arrivals pressurized the market sentiments for Jeera to some extent even as demand failed to pick up strong due to the ongoing rains and cloudy weather in parts of Rajasthan and Gujarat. Export queries however continued to be there and that could support the sentiments in the coming days. Strong Dollar vs Re would affect the exports favorably. In Unjha mandi ~12000 bags arrival was seen and demand remained at ~10000 bags. Further, expectations of increased supply from the producing regions and decline in spot demand triggered the selling, which lowered the prices. 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, supply concerns from these two major exporting countries still exist. The Cumin crop in Iran is failure due to bad weather and thus would support the Indian cumin seed market in long term. In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 13500 rupee per 100 kg. Now Jeera is getting support at 13118 and below same could see a test of 13053 level, And resistance is now likely to be seen at 13285, a move above could see prices testing 13387.