NCDEX Jeera under fresh selling Resistance seen at 16250

Technically Jeera market is under fresh selling as market has witnessed gain in open interest by 1.55% to settled at 3144 while prices down 90 rupees.

Now NCDEX Jeera is getting support at 16075 and below same could see a test of 16005 levels, and resistance is now likely to be seen at 16250, a move above could see prices testing 16355.

Jeera on NCDEX settled down by 0.55% at 16150 on profit booking after prices gained supported on good export demand hopes as output in other major producing countries- Syria and Turkey- is stated to be lower due to adverse weather conditions.

However, due to poor production in the other major growing countries, India will be the major source of supply of cumin seeds in the world market in the next few months. There were fear that jeera output in Turkey has fallen to only 4,000 tons from normal output of 18,000 tons.

Expected strong rains in Gujarat and Rajasthan could lead to adverse impact on the standing crop and mdash;thus supporting prices further. Delayed arrivals of the new crop due to delayed sowing from less rains last year could support prices.

Production, that was expected to fall earlier due to weak Monsoon, started gathering pace as Gujarat Govt initiated efforts to increase water supply in fields. Cooler weather and rains in Gujarat and Rajasthan during Dec-Jan too were good for the crop.

The recent weather disturbance in North-West India could support prices in case crop is damaged. Jeera exports are up 4.6% on year in February at 10,186 tn compared to 9,736 tn last year while for Apr-Feb period it is up 23.2% at 1.57 lt, compared to last year, according to DGCIS.In Unjha, a key spot market in Gujarat, jeera edged down by 156.55 Rupees to end at 16562.5 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 16005-16355.
--Jeera dropped on profit booking after prices gained supported on good export demand hopes as output in Syria and Turkey- is stated to be lower

--Currently, export demand is almost zero and production is expected to increase in the coming season.
--As per data arrivals of jeera in Gujarat is about 30,000 tn compared to 7,500 tn last year same period.
--In Unjha, a key spot market in Gujarat, jeera edged down by 156.55 Rupees to end at 16562.5 Rupees per 100 kg.

Courtesy: Kedia Commodities