Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 17 July 2014

Jeera Jeera settled down -0.47% at 11670 on the back of subdued export demands in the spot markets. Further, adequate stock in the physical market on increased supplies from producing regions further fueled the downtrend. In Mehsana Total arrivals are at 10000 quintals, down by 1000 quintals from previous day’s arrivals. In Rajkot Total arrivals are at 585 quintals, up by 15 quintals as against previous day. The arrivals are dropping now and this trend is likely to keep buyers in the hunt. Comfortable supplies on the back of record output along with huge carryover stocks amid weak demand may limit prices. Sources are expecting that exports of the commodity should rise in coming months amidst reports of lower production in Turkey and geopolitical crisis Syria. 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. Geo-political tensions in Syria and Turkey have led to a supply crunch in the global markets raising supply concerns from the two major exporting countries. Export orders are diverted to India. Production is also expected to fall in Syria and Turkey due to crop failure. Production of Jeera in 2013-14 is expected around 45-50 lakh bags (55 kgs each), higher than 40-45 lakh bags last year. In Unjha, a key spot market in Gujarat, jeera edged down by -9.05 rupees to end at 11694.7 rupee per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 0.21% to settled at 7323 while prices down -55 rupee, now Jeera is getting support at 11580 and below same could see a test of 11505 level, And resistance is now likely to be seen at 11735, a move above could see prices testing 11815.