Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 14 February 2014

Jeera Jeera settled flat as downside was limited due to rise in fresh demand from exporters and hopes of a pick-up in the local demand. 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. 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. As per the latest data release by Gujarat Agriculture Board, the total sowing acreage of Jeera in the state has been increased by 1.05 lakh hectares from the last year to reach 4.54 lakh hectares due to favorable weather conditions and strong export demand in local mandies. Traders estimated that the total production of the Jeera is likely to increase by 10 lakh bags to reach around 46 lakh bags in the current year. In Unjha, a key spot market in Gujarat, jeera edged down by -26.25 rupees to end at 12082.8 rupee per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 2.27% to settled at 6750 while prices down -10 rupee, now Jeera is getting support at 11745 and below same could see a test of 11690 level, And resistance is now likely to be seen at 11863, a move above could see prices testing 11926.