Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 3.48% to settled at 5625 while prices up 240 rupees.
Now NCDEX Jeera is getting support at 13895 and below same could see a test of 13655 levels, and resistance is now likely to be seen at 14305, a move above could see prices testing 14475.
Jeera yesterday settled up by 1.73% at 14135 amid expectation of fall production in 2020-21 crop year and lower carry-over stocks amid steady to firm domestic and export demand.
A survey conducted by the Federation of Indian Spice Stakeholders (FISS) estimated Jeera production for the crop year 2020-21 to fall by around 11% on account of decline in sown area and lower yield due to adverse weather prevailed in key growing states Gujarat and Rajasthan.
As per the second advance estimates released by the Ministry of Agriculture, Govt. of Gujarat, Jeera production is likely to remain around 3.7 lakh tonnes in the crop year 2020-21 despite fall in sowings due to better yield.
While the Govt. of Rajasthan has not released Jeera statistics, as per market feedback, higher temperature in Jeera growing regions of Rajasthan (like Jodhpur) has impacted standing crop quality of Jeera which is likely to affect production.
Preliminary estimates suggested that carryover stock of Jeera is likely to be around of about 20-25 Lakh bags (of 55 Kg each), i.e., 1.10 to 1.30 lakh tonnes which are higher than usual range of 7-12 Lakh bags.
On the export front, India exported around 2.45 lakh tonnes of Jeera during April 2020 to January 2021 which is 34% higher than 1.83 lakh tonnes shipped during the corresponding period of the previous year. In Unjha, a key spot market in Gujarat, jeera edged down by 25 Rupees to end at 14170 Rupees per 100 kg.
–Jeera trading range for the day is 13655-14475.
–Jeera exports from India has already surpassed the total exports (2.14 lakh tonnes) recorded for the last year (2019-20).
–FISS estimated Jeera production for the crop year 2020-21 to fall by around 11% on account of decline in sown area
–As per the second advance estimates, Govt. of Gujarat, Jeera production is likely to remain around 3.7 lakh tonnes in the crop year 2020-21.
–In Unjha, a key spot market in Gujarat, jeera edged up by 40 Rupees to end at 14040 Rupees per 100 kg.