Technically Jeera market is under short covering as market has witnessed drop in open interest by 3.68% to settled at 2043 while prices up 150 rupees.
Now NCDEX Jeera is getting support at 14040 and below same could see a test of 13935 levels, and resistance is now likely to be seen at 14210, a move above could see prices testing 14275.
Jeera yesterday settled down by 0.39% at 14090 on update production of jeera may rise 29% to 535,500 tn in the 2019-20. Jeera exports are likely to have slumped over 59% on year to 20,000 tn in Jan-Mar as the coronavirus pandemic hit demand in key markets such as China.
India was at an advantage in terms of exports due to lower production in Syria and Turkey–its main competitors.
During Apr-Dec, exports had grown 27% to 167,000 tn, data from the Spices Board India showed. Syria and Turkey are yet to come in the market and there was great opportunity for India to export during the new crop season as the sole supplier but that is also gone.
Both Syria and Turkey’s output is likely to double in 2020-21 (Jul-Jun). Despite a peak demand period, the operations of spices industry in many upcountry markets have been hit in the wake of a labour shortage.
Though the industry has to work in full swing prior to the onset of monsoon, their presence in the red zone area coupled with the departure of labour has affected the functioning of many spices industries especially in Maharashtra, Madhya Pradesh, Rajasthan, Delhi.