Technically Jeera market is under short covering as market has witnessed drop in open interest by 0.87% to settled at 3072 while prices up 25 rupees.

Now NCDEX Jeera is getting support at 13955 and below same could see a test of 13900 levels, and resistance is now likely to be seen at 14065, a move above could see prices testing 14120.

Jeera yesterday settled up by 0.18% at 14010 as prices seen supported by a likely fall in the acreage in the 2020-21 (Oct-Sep) rabi season. Farmers in Gujarat and Rajasthan may opt for other rabi crops due to remunerative prices.

Rabi sowing in Gujarat has kicked-off with farmers looking at a blooming season amid ample water availability following a good monsoon.

However, jeera looks to be going slow in the sowing. Farmers attributed a slowdown in jeera cultivation to lower realisation from the crop as compared to last year and increased moisture in the land, which has increased the risk of the jeera plants getting infected with diseases.

Last year the rabi sowing was delayed by over a month due to muddy soil following an unusually delayed withdrawal of monsoon and followed by the Maha cyclonic storm.

Farmers, however, explained that while this year the monsoon withdrawal was delayed, but dry and bright sunny days in the later parts of October months brightened the prospects for rabi cultivation.

According to Federation of Indian Spice Stakeholders (FISS) crop estimates, Jeera production to rise by 29% at 5.36 lakh tonnes from 4.17 lakh tonnes last year.

Trading Ideas:
–Jeera trading range for the day is 13900-14120.
–Jeera settled up as prices seen supported by a likely fall in the acreage in the 2020-21 (Oct-Sep) rabi season.
–Farmers in Gujarat and Rajasthan may opt for other rabi crops due to remunerative prices.
–Rabi sowing in Gujarat has kicked-off with farmers looking at a blooming season amid ample water availability following a good monsoon.
–In Unjha, a key spot market in Gujarat, jeera edged down by 12.5 Rupees to end at 13987.5 Rupees per 100 kg.