Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 17 July 2012

Jeera Jeera August contract gained Rs 30 and settled at Rs 15870 per quintal on weather concerns and robust overseas demand amid slack local supplies. Jeera is a winter crop, the planting of which begins in October, and farmers depend on the monsoon to moisten the land for sowing. Consumption of jeera to increase in the coming weeks, ahead of the festive season that begins next month. With clearer skies in Gujarat, trading activities improved in the mandis. Export demand is likely to pick up further in coming weeks that could support the prices further. 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 decreased to 17,000 bags from 20,000 bags, while demand was seen for around 14,600 bags against 20,000 bags on Saturday. 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. In Unjha, a key spot market in Gujarat, jeera gained 100 rupees to end at 15550 rupees per 100 kg. The contract made intraday low of Rs 15855 a kg and high of Rs 16247.5 a kg. Support for jeera is at 15734 below that could see a test of 15598. Resistance is now seen at 16127 above that could see a resistance of 16383.