Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 8 August 2012

Jeera Jeera September contract dropped Rs 477.5 and settled at Rs 16467.5 per quintal due to weak spot demand as farmers increased supplies in the domestic market fearing a further drop in prices amid subdued demand. Farmers in the domestic market have held back supplies on hopes of a further rise in prices while supplies from other origins have also been thin due to lower stocks. Jeera is a winter crop sown from October, and farmers depend on the rains to moisten the land for sowing. Expectations of improved overseas sales from India due to restricted supplies from Syria and Turkey and lower domestic arrivals are expected to keep jeera prices firm. In April, cumin exports rose 6 percent from a year ago to 2,500 tonnes. 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 have risen by 49% from 39396 MT in April 2011 to 58685 MT in April 20122. Jeera exports rose by 6% from 2369 MT in April 2011 to 2500 MT in April 2012. Traders expect large export orders may be diverted to India from the international markets due to the supply squeeze in Syria. The total arrivals increased to 10,000 bags from 1,200 bags, while demand was seen for around 15,000 bags against 11,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -44 rupees to end at 16456 rupees per 100 kg. The contract made intraday low of Rs 16300 a kg and high of Rs 17087.5 a kg. Support for jeera is at 16149 below that could see a test of 15831. Resistance is now seen at 16937 above that could see a resistance of 17406.