Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 21 February 2014

Jeera Jeera settled up 1.06% at 11630 on short covering tracking firmness in spot demand after prices dropped due to increasing arrival of the new crop and expectation of higher output. According to the latest data release by Gujarat Agriculture Board, the total acreage in the State has increased by 1.05 lakh hectares to 4.54 lakh hectares due to favourable weather. Traders estimate the total production of the spice to go up by 10 lakh bags to 46 lakh bags this year. With clear skies in Gujarat and Rajasthan, the arrivals are all set to rise further in coming days. In Unjha mandi ~8500 bags arrival was seen and demand remained at ~8000 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. The strong carryover stocks in local mandies also added selling in Jeera market as traders estimated that around 5-6 lakh bags of Jeera has been reported in major producing areas , up almost 2-3 lakh bags from the previous year. In Unjha, a key spot market in Gujarat, jeera edged up by 12.75 rupees to end at 11949 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -1.05% to settled at 6480 while prices up 122.5 rupee, now Jeera is getting support at 11503 and below same could see a test of 11377 level, And resistance is now likely to be seen at 11708, a move above could see prices testing 11787.