Short covering seen in NCDEX Jeera

Jeera market is under short covering as market has witnessed drop in open interest by 1.05% to settled at 3681 while prices up 30 rupees.

Now NCDEX Jeera is getting support at 18280 and below same could see a test of 18190 level, And resistance is now likely to be seen at 18490, a move above could see prices testing 18610.

Jeera on NCDEX settled up 0.16% at 18370 amid firm demand from spot domestic and export markets. However, expectation of improved acreage capped the upside momentum. Sowing of jeera is expected to rise in the near-term as government is taking steps to supply water into dry areas which will help farmers to grow crops.

Looking at the concerns of water shortage during the ongoing cultivation of the crop, it seems that the output may get affected. Jeera sowing in Gujarat is reported at 199,455 hectares compared to 269,800 hectare in the previous rabi season, according to State’s Agriculture Department data.

As per data release by State Agriculture Department of Gujarat, area under cumin in the state is pegged at 122,000 ha (vs 44,200 ha last week), down 36% on year. Last year area was 191,400 ha during the same time.

During monsoon season, Jeera producing districts of Gujarat received scanty rains, but Gujarat govt announced assured irrigation for rabi crops. According to Commerce Ministry data, exports of jeera is down, 35% on year in September at 9,855 tonnes compared to 15,167 tonnes last year.

However, jeera exports in 2018/19 (Apr-Aug) has crossed 1 lakh tonnes, up 54.8% compared to exports last year. 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.

Trading Ideas:
–Jeera trading range for the day is 18190-18610.
–Jeera prices gained amid firm demand from spot domestic and export markets.
–Sowing of jeera is expected to rise in the near-term as government is taking steps to supply water into dry areas which will help farmers to grow crops.
–NCDEX accredited warehouses jeera stocks dropped by 83 tonnes to 1724 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged down by 73.35 Rupees to end at 18966.65 Rupees per 100 kg.

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