Commodity Trading Tips for Jeera by KediaCommodity

JeeraJeera yesterday settled up 0.83% at 13632.5 as moderate demand and decreased arrival pressure helped the sentiments to improve. Export queries and prospect of good domestic demand in coming days also kept the trend firm. In Unjha mandi ~5000 bags arrival was seen and demand remained at ~8000 bags. Export demand is likely to stay firm in the short term as negligible supplies from other leading producers have raised demand for Indian-origin jeera. Jeera is a winter crop sown from October. Farmers mainly depend on rain to moisten the land for sowing. Market sources suggested that the total daily arrival of jeera have been increased from 4-5 bags in the last week to 8-9 thousand bags due to strong selling by stockiest at higher levels. The spot prices of jeera have witnessed strong gains in the last week on the account of steady export enquiries from Middle East. The current carryover stocks of jeera were reported higher at 12 lakh bags as on 31st August 2013 against 9-10 lakh bags that were reported last year on the same date. The strong carryover stocks will encourage strong stockiest selling at every surge in domestic market. In Unjha, a key spot market in Gujarat, jeera edged up by 9.25 rupees to end at 13674 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -0.72% to settled at 11979 while prices up 112.5 rupee, now Jeera is getting support at 13532 and below same could see a test of 13431 level, And resistance is now likely to be seen at 13712, a move above could see prices testing 13791.

Trading Ideas:

Jeera trading range for the day is 13441-13801.

Jeera gained as moderate demand and decreased arrival pressure helped the sentiments to improve.

Export queries and prospect of good domestic demand in coming days also kept the trend firm.

NCDEX accredited warehouses jeera stocks gained by 52 tonnes to 3744 tonnes.

In Unjha, a key spot market in Gujarat, jeera edged up by 9.25 rupees to end at 13673.7 rupee per 100 kg.