NCDEX Jeera may trade between 15340 15790 levels

Technically NCDEX Jeera is getting support at 15430 and below same could see a test of 15340 level, And resistance is now likely to be seen at 15655, a move above could see prices testing 15790.

Jeera on NCDEX settled down by 1.15% at 15515 tracking weakness in spot demand due to expectations of higher output. However, downside seen limited on the back of increased buying as a result of lower output amid lower acreage in Gujarat.

India's cumin seed output is set to touch 416,000 tons for 2018-19 season, about 9% higher than the previous year, supported by a sharp jump in production in Rajasthan. Amid increased production and a carryover stock of about 27,500 tons, the trade has set its eyes on the crop from international suppliers such as Turkey and Syria for a price guidance.

Though state government has projected a decline in jeera crop in Gujarat due to lower acreage, traders are optimistic of higher output because of adequate availability of water. Besides, lower export demand in the physical market also triggered the downtrend.

According to 1st Adv est. by Agriculture Ministry, cumin output may be higher by 10% on year to 7.56 lakh tonne. In the 2nd advance estimate, cumin production in Gujarat is forecasted down by 25% on year at 2.23 lakh tonnes for 2018/19 crop.

Area under cumin in the state is pegged at 3.48 lakh ha, down 9.1% on year but higher by 8.75% than normal area as per govt data. In the 2nd advance estimate, cumin production in Gujarat is forecasted down by 25% on year at 2.23 lakh tonnes for 2018/19 crop. In Unjha, a key spot market in Gujarat, jeera edged down by 170.85 Rupees to end at 16112.5 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 15340-15790.
--Jeera dropped tracking weakness in spot demand due to expectations of higher output.
--India's cumin seed output is set to touch 416,000 tons for 2018-19 season, about 9% higher than the previous year.
--Amid increased production and a carryover stock of about 27,500 tons, the trade has set its eyes on the crop from international suppliers.
--In Unjha, a key spot market in Gujarat, jeera edged down by 170.85 Rupees to end at 16112.5 Rupees per 100 kg.

Courtesy: Kedia Commodities