Commodity Trading Tips for Jeera by KediaCommodity

Ajay Kumar Kedia 10 December 2013

Jeera Jeera settled down -0.97% at 12765 as good sowing reports and cool weather in growing states kept market sentiments weak. With sowing progressing smoothly and favourable weather supporting higher acreage, the market has turned bearish. Arrival pressure in the mandi has reduced while demand remained moderate. With prices being at very low levels, any rise in export demand may prevent prices from falling a lot. In Unjha mandi ~8000 bags arrival was seen and demand remained at ~8000 bags. Demand is not improving as expected as the area under jeera is expected to expand and crop prospects look good. The total carryover stocks of jeera are currently estimated at 8 lakh bags against 10 bags during the same time a year ago. Traders said that hopes of a higher production of the rabi crop in view of increase in its acreage could drag its demand. Favourable weather conditions, too, are aiding higher planting of jeera this year. However, market sources say that the area under jeera could drop this year as some farmers are expected to diversify to other crops such as pulses. According to trade sources, demand from the export front might shift towards India due to political unrest in Syria which is likely to add the positive sentiments during the day. However, rising sowing prospects in major growing regions of Gujarat are likely to limit the gains. In Unjha, a key spot market in Gujarat, jeera edged up by 106.2 rupees to end at 12782.5 rupee per 100 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 10.51% to settled at 5394 while prices down -125 rupee, now Jeera is getting support at 12623 and below same could see a test of 12482 level, And resistance is now likely to be seen at 12938, a move above could see prices testing 13112.