Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 6 May 2014

Jeera Jeera settled up 2.41% at 10840 as good demand amidst moderate arrivals supported the sentiments as mandi opened after a long weekend. Rising Export demand and falling arrivals in the mandis is expected to support the prices. In Unjha mandi ~30000 bags arrival was seen and demand remained at ~35000 bags. The market sources suggest that higher production in the current year will keep Jeera prices under check at higher levels. Sources estimated that the total domestic Jeera production at 55-60 lakh bags in the current year against the previous estimates of 45-48 lakh bags. This is mainly due to strong production estimates in Gujarat. Latest data indicates that the acreage under Jeera stands at 397,300 hectares in Gujarat- the prominent producing state. This is up nearly 50% compared to last year when the crop suffered a setback. Sources are expecting that exports of the commodity should rise in coming months amidst reports of lower production in Turkey and Syria. Latest reports from the Spices Board peg exports at 86500 tonnes up by 95% during April-November 2013 compared with the same period a year ago. 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. In Unjha, a key spot market in Gujarat, jeera edged up by 74.3 rupees to end at 10700 rupee per 100 kg. Technically market is under fresh buying as market has witnessed gain in open interest by 21.35% to settled at 5508 while prices up 265 rupee, now Jeera is getting support at 10633 and below same could see a test of 10417 level, And resistance is now likely to be seen at 10973, a move above could see prices testing 11097.