Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 21 October 2013

Jeera Jeera settled down -0.16% at 12637.5 as higher-than-expected supplies in local markets and prospects of better sowing weighed on sentiment. Even at the far end of the season, spot supplies are high but demand is not improving. New season sowing is also expected to be higher and this may further weigh on prices. Daily supplies at Unjha were at 7,000-8,000 bags of 60 kg each, higher than an expected 3,000-4,000 bags. Slow domestic and export demand coupled with sufficient carry-forward stocks may keep prices under pressure. With good rains recently, traders are expecting a rise in acreage for coming season. The domestic export prices of jeera were hovering around $ 2180-2200 per tonne (FOB) against $2600-$2650 per tonne reported in Syria and Turkey. This will shift the international buyers towards Indian market in the coming export season of October- December. The futures prices will also get some buying support from receding carryover stocks in the major mandies of Gujarat. The total carryover stocks of jeera are currently estimated at 7 lakh bags against 11 bags of the last year. The commodity had slumped in last few days, giving up on thin demand and selling pressure in futures. However, the supply remains poor and demand is expected to support prices in near term. Heavy rainfall has been witnessed in few regions Gujarat though no major impact of the same has been seen so far. In Unjha, a key spot market in Gujarat, jeera edged down by -119.5 rupees to end at 13109 rupee per 100 kg. Now Jeera is getting support at 12602 and below same could see a test of 12566 level, And resistance is now likely to be seen at 12699, a move above could see prices testing 12760.