Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Jeera Jeera yesterday settled up 1.42% at 13410 on export demand though expectations of better sowing in the leading cultivating state due to ample rains restricted the upside. Export demand is good and is expected to remain firm in the short term because supplies from other leading producers are negligible. Gujarat, the top jeera producer in India, 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. Cumin exports increased by 76 per cent to 79,900 tonnes in 2012-13 from 45,500 tonnes previous year valued at Rs 1093.17 crore, up 70% from last year. Good demand is being witnessed in Jeera offtakes from global markets edges up after Ramadan. Prices are expected to hold on amid good overseas demand and falling arrivals. Demand is moderating in local markets now but prices continue to linger just under their four-month highs as the sentiments still remain positive amid favorable global offtake. Spot Jeera markets are still witnessing a good activity amid renewed buying interest. The futures have also witnessed good upside in last few days and further rise is possible given the persistent worries over supplies from Syria in world markets. Heavy rainfall has been witnessed in few regions Gujarat though no major impact of the same has been seen so far. 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. In Unjha, a key spot market in Gujarat, jeera edged down by -20 rupees to end at 13480 rupee per 100 kg. Now Jeera is getting support at 13223 and below same could see a test of 13037 level, And resistance is now likely to be seen at 13538, a move above could see prices testing 13667.