Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 12 February 2014

Jeera Jeera settled down -1.38% at 11825 declined sharply on higher area under the spice as well as record high output expectations. Large carryover stocks and higher arrivals added to the downside pressure. Jeera sowing in Gujarat is reported to be complete and is said to be in good condition, area under jeera in Gujarat was reported at 455,000 ha as against 335,200 ha last year while about 390,000 ha were sown in Rajasthan. Also the ongoing geo-political tensions in Syria and Turkey have led to a supply crunch in the global markets raising supply concerns from these two major exporting countries. Export orders are diverted to India. Production is also expected to fall in Syria and Turkey. Exports of Jeera between Apr-Sept 2013 stood at 67,500 tn, as against 35,018 tn between Apr- Sept 2012. Production of Jeera in 2012-13 is expected around 40-45 lakh bags (55 kgs each), marginally higher than 40 lakh bags last year. Carryover stocks from 2011-12 harvest were around 8-9 lakh bags. In Unjha, a key spot market in Gujarat, jeera edged down by -85.95 rupees to end at 12280.95 rupee per 100 kg. About 4,000 bags of jeera arrived in Unjha mandi of Gujarat and prices declined by 5-7 to 1,900-2,460 for 20 kg. In Rajkot APMC, about 800-1,000 bags were arrived and prices stood at 2,100-2,260. Technically market is under long liquidation as market has witnessed drop in open interest by -0.89% to settled at 6645 while prices down -165 rupee, now Jeera is getting support at 11781 and below same could see a test of 11737 level, And resistance is now likely to be seen at 11908, a move above could see prices testing 11991.