Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 28 July 2014

Jeera Jeera settled up 0.97% at 11505 due to pick-up in demand from local parties as well as overseas enquiries. Firming trend in spot market and restricted arrivals from producing belts also supported the upside in prices. However the upside seen limited due to revival of monsoon in major growing states of jeera such as Rajasthan and Gujarat. In Delhi arrivals were reported at 7000 quintals, lower by 1000 quintals as compared to previous day. In Mehsana sources reported arrivals at 8000 quintals, up by 1000 quintals from previous day’s arrivals. In Rajkot total arrivals are at 240 quintals, lower by 210 quintals as against previous day. However, with rates having fallen a lot, traders are anticipating demand to pick up in the coming days. Rains in Gujarat however has been hampering the trading aspects in the mandis. Comfortable supplies on the back of record output along with good carryover stocks amid weak demand is limiting the upside in prices. Exports should rise in coming months amidst reports of lower production in Turkey and geopolitical crisis Syria. 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. In Unjha, a key spot market in Gujarat, jeera edged up by 55 rupees to end at 11645 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -3.09% to settled at 5826, now Jeera is getting support at 11370 and below same could see a test of 11235 level, And resistance is now likely to be seen at 11605, a move above could see prices testing 11705.