Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 22 April 2013

Jeera Jeera May contract dropped Rs 280 and settled at Rs 13055 per quintal as supplies from the new season crop and expectations of higher output weighed on prices. Inquiries from exporters are gaining momentum. Jeera exports are likely to go up this season due to almost negligible supplies from other exporting nations. India exported about 524,690 tonnes of spices during April-December, estimates by the ministry of commerce showed, indicating exports in the financial year ended March 31 were likely much higher than the previous year. Sources are expecting that the total production of jeera in the current year is expected to be around 34 -35 lakh bags, up 1 lakg bags from the last year. This is mainly due to better crop productivity in some areas of Gujarat and quality is poor in Rajasthan. Better crop expectations and high arrivals in the market may turn the trend in near term. Good sowing reports from Gujarat and Rajasthan keeps the production prospects good. The trend in medium to long term trend looks bullish as exports are expected to pick up in coming months amidst lower production reports in Turkey and Syria. Indian production is expected at 28-30 lakh bags translating to more than 1.5 lakh tons this year. As per market sources, the spot mandies of jeera have reported the record arrivals of around 2.50 lakh bags in the last week. This was mainly due to ample carryover stocks of around 8-10 lakh bags of old jeera in local mandies along with anticipation of strong jeera production in the current year. In Unjha, a key spot market in Gujarat, jeera dropped -27.25 rupees to end at 13500 rupees per 100 kg. The contract made intraday low of Rs 12890 a kg and high of Rs 13410 a kg. Support for jeera is at 12827 below that could see a test of 12598. Resistance is now seen at 13347 above that could see a resistance of 13638.