Commodity Trading Tips for Jeera by Kedia Commodity

Jeera on NCDEX settled up by 2.09% at 18300 due to weak output in Gujarat amid tight stocks from the producing regions. However upside seen limited 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. 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. Jeera output in Gujarat, the largest producing state, may fall 11% to 212,000 ton during 2016-17 following lower acreage and adverse weather conditions, according to state agriculture department data. Last year, Gujarat produced 238,000 tons jeera. During 2016-17 jeera acreage declined to 278,000 hectare from 292,000 hectare a year ago, data showed. Jeera output per hectare is projected at 761 kg per down from 833 kg a year ago. Above normal temperature impacted the yield jeera yield. In Unjha, a key spot market in Gujarat, jeera edged down by -46.15 Rupees to end at 18653.85 Rupees per 100 kg. Technically now Jeera is getting support at 17915 and below same could see a test of 17530 level, And resistance is now likely to be seen at 18525, a move above could see prices testing 18750.

Trading Ideas

# Jeera trading range for the day is 17530-18750.

# Jeera prices gains due to weak output in Gujarat amid tight stocks from the producing regions.

# 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.

# In Unjha, a key spot market in Gujarat, jeera edged down by -46.15 Rupees to end at 18653.85 Rupees per 100 kg.