Technically Jeera market is under fresh selling as market has witnessed gain in open interest by 1.46% to settled at 3117 while prices down 225 rupees.
Now NCDEX Jeera is getting support at 13680 and below same could see a test of 13575 levels, and resistance is now likely to be seen at 13970, a move above could see prices testing 14155.
Jeera yesterday settled down by 1.61% at 13785 as traders eyed the sowing trends in coming harvest. The demand in retail markets is likely to soften a bit post Diwali festivities, keeping wholesale buying in check.
The latest sowing data from leading producing state of Gujarat showed that the acreage under Jeera stood at 50496 hectares, marking a sharp spurt of 156% compared to 19723 hectares at the same time last year.
While there is a lot of time for the actual harvest to arrive in market, traders will be focusing on the sowing activity in near term.
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 13575-14155.
–Jeera settled down by as traders eyed the sowing trends in coming harvest.
–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 0.85 Rupees to end at 13986.65 Rupees per 100 kg.