Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 7.15% to settled at 5691 while prices down 480 rupees.

Now NCDEX Jeera is getting support at 14860 and below same could see a test of 14660 levels, and resistance is now likely to be seen at 15355, a move above could see prices testing 15650.

Jeera yesterday settled down by 3.09% at 15060 on profit booking after prices rose amid fears of a deficient monsoon and as a geo-political crisis in the Afghanistan could turn the heat as supply of spices has been halted suddenly.

With lower customs duty on products from Afghanistan and long-term supply arrangements in place, traders have refrained from reaching out to alternate destinations, but fear domestic prices might soar. Gujarat, has reported 59 per cent deficient rainfall till August 24.

The key growing region of North Gujarat has 62 per cent rainfall deficiency. Similarly, major jeera growing districts, including Jaisalmer and Barmer, face a rainfall deficit, triggering drought-like situation in western Rajasthan.

According to the first advance estimates, cumin seed production was pegged at 8.56 lakh tonnes during 2020-21, lower than the previous year’s 9.12 lakh tonnes.

The area had declined marginally during 2020-21 to 12.41 lakh hectares (lh) compared with the previous year’s 12.76 lh. Gujarat is the largest producer of cumin, where production stood at 4.29 lakh tonnes during 2020-21, while in Rajasthan, the output of the spices seed crop was estimated at 4.25 lakh tonnes.

There is also uncertainty of the lockdown over a possible third wave of Covid and low demand from the hotel industry. In Unjha, a key spot market in Gujarat, jeera edged down by 171.8 Rupees to end at 14917.65 Rupees per 100 kg.

Trading Ideas:
–Jeera trading range for the day is 14660-15650.
–Jeera dropped on profit booking after prices rose amid fears of a deficient monsoon and as a geo-political crisis in Afghanistan halted spices supply
–Cumin seed production was pegged at 8.56 lakh tonnes during 2020-21, lower than the previous year’s 9.12 lakh tonnes.
–The area had declined marginally during 2020-21 to 12.41 lakh hectares (lh) compared with the previous year’s 12.76 lh.
–In Unjha, a key spot market in Gujarat, jeera edged down by 171.8 Rupees to end at 14917.65 Rupees per 100 kg