Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 3 September 2013

Jeera Jeera yesterday settled up 3.99% at 14390 as export queries in the mandis supported the market sentiments as moderate recovery was noted. Spot remained firm however as traders expect demand to rise further in coming days. However upside was seen limited on back of higher sowing in top producing state and fresh supply of the commodity in the major production belts. In Unjha mandi ~6000 bags arrival was seen and demand remained at ~7000 bags. Gujarat, the top jeera producer in India, has received above average rainfall so far in this monsoon season. Jeera is a winter crop sown from October. Farmers depend on rains to moisten the land for sowing. Export demand is good but supplies in the lean season are still higher than expected and this is restricting the upside in prices. India is the largest jeera producer in the world, followed by Syria and Turkey. Negligible supplies from these countries have raised demand for Indian jeera. Demand is moderating in local markets now but prices continue to linger just under their four-month highs as the sentiments still remain positive amid favorable global offtake. Spot Jeera markets are still witnessing a good activity amid renewed buying interest. The total Jeera production is seen around 34-35 lakh bags in the current year, up almost 1-2 lakh bags from the last year. In Unjha, a key spot market in Gujarat, jeera edged up by 168.75 rupees to end at 13775 rupee per 100 kg. Technically market is under fresh buying as market has witnessed gain in open interest by 30.52% to settled at 8661 while prices up 552.5 rupee, now Jeera is getting support at 14013 and below same could see a test of 13636 level, And resistance is now likely to be seen at 14580, a move above could see prices testing 14770.