NCDEX Jeera under fresh buying Resistance seen at 16355

Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 14.9% to settled at 2475 while prices up 20 rupees.

Now NCDEX Jeera is getting support at 16195 and below same could see a test of 16110 levels, and resistance is now likely to be seen at 16355, a move above could see prices testing 16430.

Jeera on NCDEX settled up by 0.12% at 16275 on good export demand hopes as output in Syria and Turkey- is stated to be lower due to adverse weather conditions. Currently, export demand is almost zero and production is expected to increase in the coming season.

Due to the prolonged monsoon, traders are expecting a good winter which will help increase production. Parched land of Gujarat got good rains recently and soil moisture along with higher prices will motivate farmers to grow jeera on higher area in the ensuing season. As per data arrivals of jeera in Gujarat is about 30,000 tn compared to 7,500 tn last year same period.

As per Commerce Ministry data, the Jeera exports down to 18,165 tn compared to 22,000 tn last year. Overall, the export of Jeera has dropped 6.4% in the first quarter of FY20 to 71,000 compared to 75,800 tn in the same period last fiscal. In Unjha, a key spot market in Gujarat, jeera edged up by 67.15 Rupees to end at 16728 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 16110-16430.
--Jeera prices gained on good export demand hopes as output in Syria and Turkey.

--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 up by 67.15 Rupees to end at 16728 Rupees per 100 kg.

Courtesy: Kedia Commodities