Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Leyangi 25 October 2013

Jeera Jeera yesterday settled down -0.22% at 12600 as expectations of higher area under cultivation and large spot supplies weighed on prices. Sowing of jeera has started in some areas and would gain pace from next week. Jeera is a winter crop sown from October and farmers mainly depend on the rains to moisten the land for sowing. Jeera prices have come down significantly and this is a good opportunity to buy. Export demand has also picked up and is likely to gain further. Daily supplies at Unjha were at 7,000-8,000 bags of 60 kg each, higher than the expected 3,000-4,000 bags. The physical traders suggested that strong export demand of jeera in the current year accompanied with favourable weather conditions will encourage strong jeera crop sowing in the current year. The total sowing acreage is likely to increase by 10-12% in the current year as strong sowing is likely in the areas of Gujarat and Rajasthan. Slow domestic and export demand coupled with sufficient carry-forward stocks may keep prices under pressure. With good rains recently, traders are expecting a rise in acreage for coming season. The domestic export prices of jeera were hovering around $ 2180-2200 per tonne (FOB) against $2600-$2650 per tonne reported in Syria and Turkey. This will shift the international buyers towards Indian market in the coming export season of October- December. In Unjha, a key spot market in Gujarat, jeera edged up by 6.6 rupees to end at 13122 rupee per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -3.56% to settled at 9825 while prices down -27.5 rupee, now Jeera is getting support at 12526 and below same could see a test of 12452 level, And resistance is now likely to be seen at 12673, a move above could see prices testing 12746.