Technically Jeera market is under short covering as market has witnessed drop in open interest by 1.66% to settled at while prices up 35 rupees.
Now NCDEX Jeera is getting support at 13475 and below same could see a test of 13370 levels, and resistance is now likely to be seen at 13685, a move above could see prices testing 13790.
Jeera yesterday settled up by 0.26% at 13580 as only 45-50 percent of the total production has come to the market. In recent sessions, prices dropped amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets.
Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions. In the benchmark market Unjha, 7,000 bags (1 bag = 55 kg) arrived yesterday as against 10,000 bags.
As India struggles against curbing the Corona pandemic, exports markets have turned subdued. The importers prefer to wait for the situation to normalize before negotiating for fresh deals.
They rather prefer to clear their older stocks first and presently they feel that the older inventory may be sufficient to balance the existing demand for next few weeks easily.
The new season arrivals shall continue with good numbers hence there will be ample availability in the market. However from a broader perspective, India’s exports outlook has brightened while crop is expected to be lower versus year on year.
Also, the nearest export competitors i.e. Turkey and Syria may not supply much to the world due to lower exportable surplus. In Unjha, a key spot market in Gujarat, jeera edged up by 66.65 Rupees to end at 13757.15 Rupees per 100 kg.
Trading Ideas:
–Jeera trading range for the day is 13370-13790.
–Jeera prices gained as only 45-50 percent of the total production has come to the market.
–However upside seen limited amid excess supply and as demand is likely to remain subdued on weak buying from local and overseas markets.
–Farmers need money to start sowing the kharif crop and they are bringing huge stocks to sell in the market after the easing of Covid-related restrictions.
–In Unjha, a key spot market in Gujarat, jeera edged up by 66.65 Rupees to end at 13757.15 Rupees per 100 kg