Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 25 September 2013

Jeera Jeera settled flat due to weak local demand amid higher-than-expected local supplies in the lean season and on prospects of better sowing. However there are hopes that exports are likely to increase in the current crop year due to poor prospects from politically unstable Syria mainly kept price under pressure. Rains in Gujarat are reportedly good for the sowing of the new crop as it picks up moisture. In Unjha mandi ~7500 bags arrival was seen and demand remained at ~7000 bags. Rumors of early sowing of jeera (possibly October onwards) in Gujarat due to ample soil moisture may add more bearish sentiments in the jeera market. But There are hopes that exports are likely to increase in the current crop year (February-March) due to poor prospects from politically unstable Syria. The total carryover stocks of jeera are currently estimated at 13 lakh bags ( inclusive of 4-5 lakh bags of farmers stock) , down almost 4-5 lakh bags from the last year in the same period. Traders estimated that the net opening stock of the jeera for the next marketing season will be much lower at around 2-3 lakh bags against 6 lakh bags of the current year. The poor opening stock is mainly due to strong export demand of jeera in the current year. The prices also received support from rise in average monthly consumption of jeera at lower levels. Traders stated that the average monthly usage of jeera will be increased 1 lakh bags to reach 3.50 lakh bags. In Unjha, a key spot market in Gujarat, jeera edged down by -56.95 rupees to end at 13438 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -3.6% to settled at 11013 while prices up 2.5 rupee, now Jeera is getting support at 12897 and below same could see a test of 12796 level, And resistance is now likely to be seen at 13067, a move above could see prices testing 13136.