Jeera under fresh selling; Resistance seen at 18710

Jeera market is under fresh selling as market has witnessed gain in open interest by 1.71% to settled at 1782 while prices down 175 rupees.

Now NCDEX Jeera is getting support at 18710 and below same could see a test of 18550 level, And resistance is now likely to be seen at 19090, a move above could see prices testing 19310.

Jeera on NCDEX settled down 0.92% at 18870 due to higher supply in the spot market while the export demand is lower. However, improved cultivation on assurance of irrigation in Gujarat capped the upside momentum.

Meanwhile, jeera arrivals in Unjha mandi, Gujarat were 4,061 bags (20 Kg/bag), compared to 3,102 bags.  Jeera sowing in Gujarat fell to 44,200 hectares from 130,100 hectares a year ago due to lack of water, state government data showed. Sowing is likely to pickup in the coming weeks.

However, there are doubts of any increase in acreage due to dry weather. Moreover, concern that standing cumin crops might get affected amid scanty rainfalls also supported upward trend in prices.

Deficient rainfall in key producing region of Gujarat like Saurashtra and Kutch may lower the acreage. According to the initial trade estimate, there may not be any increase in the sowing area of jeera because of dry weather.

According to the market estimates, India has already exported around 1.25 lakh tonnes of jeera so far this year and there is a possibility of it touching a record 1.75 lakh tonnes by the end of this fiscal year.

As per Gujarat state govt. data, Jeera progressive area of Rabi 2018-19, 18,400 hectares as compared to previous Rabi season 59,400 hectares, 6% completed from normal area 318,900 hectares. Current year sowing reported slow due to lower rainfall.

Trading Ideas:
–Jeera trading range for the day is 18550-19310.
–Jeera dropped due to higher supply in the spot market while the export demand is lower.
–However, deficient rainfall in key producing region of Gujarat like Saurashtra and Kutch may lower the acreage.
–NCDEX accredited warehouses jeera stocks gained by 42 tonnes to 2158 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged down by 269.9 Rupees to end at 19291.4 Rupees per 100 kg.

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *