NCDEX Jeera may trade between 15440 15740 levels

Technically NCDEX Jeera is getting support at 15530 and below same could see a test of 15440 level, And resistance is now likely to be seen at 15680, a move above could see prices testing 15740.

Jeera on NCDEX settled up by 0.58% at 15620 on the back of increased buying as a result of lower output amid lower acreage in Gujarat.

Though, higher availability in the physical market, capped the uptrend. 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 2.5 Rupees to end at 15937.5 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 15440-15740.
--Jeera gained 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.
--According to 1st Adv est. by Agriculture Ministry, cumin output may be higher by 10% on year to 7.56 lakh tonne.
--In Unjha, a key spot market in Gujarat, jeera edged down by 2.5 Rupees to end at 15937.5 Rupees per 100 kg.

Courtesy: Kedia Commodities