Commodity Trading Tips for Jeera by Kedia Commodity

Jeera on NCDEX settled up 2.26% at 17880 due to weak supplies position amid good demand from exporters. Though, some gains were capped on expectation of increase in Jeera area in Gujarat state mainly in Saurashtra and Kutch zone current year. Sowing has been good so far and weather conditions are also favorable for jeera crop. As all is going well as exporters are not buying in large quantities but are waiting for the new crop. However, looking at the current trend, buyers may not take a risk and initially demand will be low at the beginning of the new season. According to jeera exporters, while the new season is likely to start in March, farmers have gradually begun accepting payment digitally, and have therefore been able to ensure steady supply. Jeera exporters may not face the problems that cotton, groundnut or other commodities exporters are facing due to the cash crunch post demonetisation. The new season for jeera will start in March, by which time exporters may be able to source the required stocks. As per industry data, India exported about 100,000 tonnes of the spice during April to December and more than 20,000 tonnes of additional export would be possible during the next two months. As against this, India's total jeera exports were 98,000 tonnes in 2015-16.At Unjha market in Mehsana, sources reported arrivals at 1000 quintals, higher by 500 quintals as compared to previous day. Technically market is under fresh buying as market has witnessed gain in open interest by 17.53% to settled at 5169 while prices up 395 rupee, now Jeera is getting support at 17610 and below same could see a test of 17340 level, And resistance is now likely to be seen at 18050, a move above could see prices testing 18220.

Trading Ideas:

Jeera trading range for the day is 17340-18220.

Jeera gained due to weak supplies position amid good demand from exporters.

Though, some gains were capped on expectation of increase in Jeera area in Gujarat state mainly in Saurashtra and Kutch zone current year.

Sowing has been good so far and weather conditions are also favorable for jeera crop.

In Unjha, a key spot market in Gujarat, jeera edged up by 35.9 rupees to end at 18591.65 rupee per 100 kg.