Technically Jeera market is under short covering as market has witnessed drop in open interest by 3.91% to settled at 4206 while prices up 10 rupees.
Now NCDEX Jeera is getting support at 14690 and below same could see a test of 14605 levels, and resistance is now likely to be seen at 14880, a move above could see prices testing 14985.
Jeera yesterday settled up by 0.07% at 14770 due to lower production and yields in Rajasthan and Gujarat coupled with strong export prospects.
Further, FISS in its crop projection for 2020-21, has estimated a 10.6 per cent drop in cumin seed output at 4.79 lakh tonnes against 5.35 lakh tonnes previous year.
The yield is likely to be poor due to climatic adversities in the growing regions. All India yield per hectare may be lower by 3.6 per cent at 504 kg (522 kg last year).
The cultivation is 7.3 per cent lower at 9.50 lakh hectares against 10.26 lakh hectares in the previous year. Major export demand coming from UAE and other gulf countries ahead of Ramzan.
Weather conditions in major producing states have hampered the quality and supply of jeera. On the international front support is also seen as turkey and Syria have reported less production of cumin this season.
Production in Syria had dropped around 25-30 percent versus the previous year due to political instability that has hampered the farming sector. In Unjha, a key spot market in Gujarat, jeera edged up by 75.45 Rupees to end at 14316.65 Rupees per 100 kg.
–Jeera trading range for the day is 14630-14790.
–Jeera dropped as mandi arrivals of Jeera, at all-India level increased by around 48% during the month over the previous month
–New season crop arrivals are reported in Gujarat and Rajasthan, seems to have led to higher mandi arrivals.
–However, new season crop is reported to have higher moisture level.
–In Unjha, a key spot market in Gujarat, jeera edged up by 75.45 Rupees to end at 14316.65 Rupees per 100 kg.