Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 13 July 2012

Jeera Jeera August contract gained Rs 610 and settled at Rs 15812.5 per quintal due to fresh export enquiries and strong local demand amid slack domestic supplies. Demand is very strong in the domestic market from exporters and stockists. Demand is higher than the availability and this is keeping prices firm. The weather department has forecast rains at some places in Gujarat during next 2-3 days. Jeera is a winter crop, planting of which begins from October, and farmers depend on the monsoon to moisten the land for sowing. The weather department has forecast rains at some places in Gujarat during next 2-3 days. Moderate rains in Gujarat created a slight bearish impact on the markets as some moisture would be needed for the sowing to start in October. Traders expect high volatility to continue in the near term but medium to long term trend looks Bullish as exports are expected to pick up in coming months amidst lower production reports in Turkey and Syria and a strong Dollar. Lower production in Turkey and Syria could support Indian rates. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes. Latest report from Spice Board of India indicates Spices exports for April 2011-Jan 2012 have risen by 1% from 432115 MT in 2010-11 to 436175 MT in 2011-12. Jeera exports rose by 54% from 22450 MT to 34500 MT in same period. The total arrivals of jeera decreased to 10,000 bags from 12,000 bags, while demand was seen for around 12,000 bags. In Unjha, a key spot market in Gujarat, jeera gained 319.8 rupees to end at 15199.8 rupees per 100 kg. The contract made intraday low of Rs 15120 a kg and high of Rs 15812.5 a kg. Support for jeera is at 15351 below that could see a test of 14889. Resistance is now seen at 16043 above that could see a resistance of
16274.