Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 26 June 2013

Jeera Jeera yesterday settled up 0.37% at 13652.5 as a pick-up in overseas demand supported prices. Supplies in the spot market are still higher than expected but any sharp fall is unlikely because overseas demand is supportive. Jeera arrivals in the Unjha mandi stood at 18,000 bags while demand was for 24,000 bags. The total Jeera production is seen around 34-35 lakh bags in the current year, up almost 1-2 lakh bags from the last year. This is mainly due to sowing in Rajasthan and better recovery of Jeera from Gujarat. Due to the ongoing geo-political tensions in Syria and Turkey, supply concerns from these two major exporting countries still exist. The Cumin crop in Iran is failure due to bad weather and thus would support the Indian cumin seed market in long term. Cumin exports increased by 76 per cent to 79,900 tonnes in 2012-13 from 45,500 tonnes previous year valued at Rs 1093.17 crore, up 70% from last year. The total Jeera production in the country is estimated around 34-35 lakh bags in the current year, up almost 1-2 lakh bags from the last year. This is mainly due to sowing in Rajasthan and better recovery of Jeera from Gujarat. Moreover, hedgers selling in futures market in order to protect their long position in physical market also might add selling pressure in Jeera market. The arrivals have been sliding in last few weeks as the peak supply season gets over. The commodity normally witnesses a flood of fresh supplies in March-May and the arrivals tend to slide thereafter. The trend is similar this year as well. In Unjha, a key spot market in Gujrat, jeera edged up by 3.75 rupees to end at 13768 rupee per 100 kg. Now Jeera is getting support at 13528 and below same could see a test of 13404 level, And resistance is now likely to be seen at 13758, a move above could see prices testing
13864.