Jeera under fresh selling; Support seen at 17040

Jeera market is under fresh selling as market has witnessed gain in open interest by 1.27% to settled at 3357 while prices down 145 rupees.

Now NCDEX Jeera is getting support at 17040 and below same could see a test of 16900 level, And resistance is now likely to be seen at 17400, a move above could see prices testing 17620.

Jeera on NCDEX settled down by 0.84% at 17185 due to surplus supplies in the physical market while sowing is expected to rise this year. Jeera arrivals in Unjha mandi, Gujarat were 3,978 bags (20 Kg/bag), compared to 3,908 bags on the previous day.

Cumin acreage improves in Gujarat on reports of providing water in canal for irrigation for rabi crop by govt of Gujarat. As per data release by Agriculture Department of Gujarat, area under cumin in the state is pegged at 306,389 ha as on 17-Dec, down 12% on year.

Last week area was 13% lower y/y. During monsoon season, Jeera producing districts of Gujarat received scanty rains, but Gujarat govt. announced assured irrigation for rabi crops. 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.

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.  In Unjha, a key spot market in Gujarat, jeera edged down by -42.45 Rupees to end at 18090.9 Rupees per 100 kg.

Trading Ideas:
–Jeera trading range for the day is 16900-17620.
–Jeera prices dropped due to surplus supplies in the physical market while sowing is expected to rise this year.
–Cumin acreage improves in Gujarat on reports of providing water in canal for irrigation for rabi crop by govt of Gujarat.|
–NCDEX accredited warehouses jeera stocks dropped by 36 tonnes to 1286 tonnes.
–In Unjha, a key spot market in Gujarat, jeera edged down by -42.45 Rupees to end at 18090.9 Rupees per 100 kg.

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