Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 19 August 2014

Jeera Jeera settled down -0.4% at 11195 on account of poor demand in the spot market. Besides, ample supplies from the major producing belts too supported jeera price’s downtrend. Exports are expected to pick up in coming days that could support prices in coming days. At Jodhpur market estimated market supply was at 200 quintals, lower by 800 quintals as against previous day. At New Delhi market traders reported arrivals at 8000 quintals, steady as against previous day’s arrival. The arrivals are still low compared to their seasonal highs of around 10000-12000 bags few months back but are prompting a weak response from the buyers. The export prices are at $2.93 per kg, gaining by 10% over last one month. Prices had dropped in last few weeks on good rainfall and limited stockiest activity. However, the arrivals continue to drop in local markets and this trend is likely to keep buyers in the hunt. The total stocks in local mandies were almost double of the previous year's level of 35 lakh bags due to record production in the current year. However, weak supplies international market will reward Indian exporters in medium term. 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. Technically market is under long liquidation as market has witnessed drop in open interest by -0.74% to settled at 8046 while prices down -45 rupee, now Jeera is getting support at 11150 and below same could see a test of 11105 level, And resistance is now likely to be seen at 11240, a move above could see prices testing 11285.