Technically Jeera market is under fresh selling as market has witnessed gain in open interest by 2.64% to settled at 2097 while prices down 55 rupees.
Now NCDEX Jeera is getting support at 14025 and below same could see a test of 13965 levels, and resistance is now likely to be seen at 14140, a move above could see prices testing 14195.
Jeera yesterday settled up by 0.29% at 13605 on some buying support after prices dropepd as higher production in the current year weighed on prices. The Jeera crop output is said to be good and as per market estimates, it is expected to increase by 10% to 4.4 lakh tonnes in MY 2020-21 (Apr-Mar).
However, decreased arrivals and stable demand limiting the downside. According to the third advance estimates for the rabi crop in Gujarat, Jeera production in the state is seen rising to 3.88 lakh tonnes in the 2019-20 season.
In the 2019-20 Rabi season, acreage in Gujarat as on January 27, 2020, is reported at 4.88 lakh hectares, higher by 40% from 3.47 lakh hectares a year ago. Revival in export buying in the global markets, opening of the retail markets and current supply against the demand has supported Jeera prices at lower levels.
Along with China, UAE and Vietnam have also witnessed an incline in demand for Indian Jeera. Moreover, export buying from the European Nations for Indian Cumin seed is also expected to pick up, as the production in Syria has been reported to be lower by 25-30 percent this year compared to the previous year. Furthermore, Jeera exports from India are also expected to pick up in the United States during the coming weeks.
Trading Ideas:
–Jeera trading range for the day is 13470-13690.
–Jeera gained on some buying support after prices dropped as higher production in the current year weighed on prices.
–However, decreased arrivals and stable demand limiting the downside
–The Jeera crop output is said to be good and as per market estimates, it is expected to increase by 10% to 4.4 lakh tonnes in MY 2020-21 (Apr-Mar).
–In Unjha, a key spot market in Gujarat, jeera edged up by 10.55 Rupees to end at 13557.9 Rupees per 100 kg.