Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 18 February 2013

Jeera Jeera March contract dropped Rs 112.5 and settled at Rs 13435 per quintal as rising supplies from the new crop and expectations of a rise in output weighed on sentiment but downside was limited on fresh overseas enquiries and a pick-up in spot demand. Overseas enquiries have come for Indian origin jeera as supplies from other destinations are minimal. About 2,000 bags of 60 kg each from the new season crop have started arriving daily in local markets. Jeera is a winter crop sown from October to December and fresh supplies start arriving in February. Some Jeera producing region in Gujarat is witnessing rainfall for last 24 hours. However, traders are eying an increase in arrivals from fresh crop and the commodity could witness a delay in arrivals if the wet spell extends. Jeera spot prices have been hovering around Rs 13700-800 per quintal in Unjha for last few days. The total arrivals stood at 7,000 bags (3,000 bags for new and 4,000 bags for previous). Higher production prospects are likely to keep pressure on market sentiments. Good sowing reports from Gujarat and Rajasthan of India are also keeping sentiments down. There are expectations of demand picking up from mid-February onwards that could support the falling rates to some extent. In Unjha, a key spot market in Gujarat, jeera gained 69.15 rupees to end at 13990 rupees per 100 kg. The contract made intraday low of Rs 13277.5 a kg and high of Rs 13820 a kg. Support for jeera is at 13202 below that could see a test of 12968. Resistance is now seen at 13744 above that could see a resistance of 14053.