Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 13.55% to settled at 6258 while prices up 20 rupees.
Now NCDEX Jeera is getting support at 13510 and below same could see a test of 13440 levels, and resistance is now likely to be seen at 13690, a move above could see prices testing 13800.
Jeera yesterday settled up by 0.15% at 13585 as major markets reopened after lockdown, bringing good arrivals across markets but prices are getting support as the upcoming festival season is expected to increase domestic demand. Only 45-50 percent of the total production has come to the market.
There is also uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry. As per preliminary estimates suggested that carryover stocks of Jeera are 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.
However, after accounting for wastage, and increased exports, market participants are expecting carryover stocks to be around 0.65-0.70 lakh tonnes. It may be noted that during the FY 2020-21 Jeera exports stood at 2.98 lakh tonnes, 39% higher over the previous year.
As per sources, export demand for Jeera is expected to recover as close competitors of India in terms of exporting Jeera, viz., Turkey and Syria may not supply much to the world due to lower exportable surplus.
It has been reported that production in Syria is likely to be lower because of political instability and in Turkey is also likely to be lower compared to previous year. In Unjha, a key spot market in Gujarat, jeera edged down by 52.75 Rupees to end at 13508.35 Rupees per 100 kg.
Trading Ideas:
–Jeera trading range for the day is 13440-13800.
–Jeera prices settled firm as major markets reopened after lockdown
–Only 45-50 percent of the total production has come to the market.
–As per preliminary estimates suggested that carryover stocks of Jeera are likely to be around of about 20-25 Lakh
–In Unjha, a key spot market in Gujarat, jeera edged down by 52.75 Rupees to end at 13508.35 Rupees per 100 kg.