Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 25 August 2014

Jeera Jeera settled down -0.62% at 11200 on thin local demand, though fresh export inquiries limited the downside. Investors are reportedly waiting for some corrections before initiating fresh demand in mandis. At Unjha market in Mehsana total arrivals are at 6000 quintals, up by 1000 quintals as compared to previous day. At Rajkot market estimated market supply was at 415 quintals, higher by 105 quintals from previous day's arrivals. At New Delhi market sources reported arrivals at 12000 quintals, unchanged as compared to previous day's arrival. At Jodhpur market total arrivals are at 500 quintals, up by 250 quintals from previous day's arrivals. Sources expect arrivals to remain moderate but till exports pick up significantly, trend likely to remain slight weak as of now. 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. At New Delhi market traders reported arrivals at 8000 quintals, steady as against previous day's arrival. In Unjha, a key spot market in Gujarat, jeera edged down by -98.6 rupees to end at 11255.4 rupee per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -1.64% to settled at 7563, now Jeera is getting support at 11145 and below same could see a test of 11090 level, And resistance is now likely to be seen at 11285, a move above could see prices testing 11370.