NCDEX Jeera under fresh selling Support seen at 16207

Technically Jeera market is under fresh selling as market has witnessed gain in open interest by 4.7% to settled at 2274 while prices down 115 rupees.

Now NCDEX Jeera is getting support at 16207 and below same could see a test of 16118 level, and resistance is now likely to be seen at 16382, a move above could see prices testing 16468.

Jeera on NCDEX settled down 0.7% at 16295 amid good stock and hopes of higher sowing. Jeera sowing is seen higher during the coming season due to better prices and favourable weather conditions.

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. At New Delhi market , total arrivals are at 7000 quintals, lower by 3000 quintals from previous day and rsquo;s arrivals. At Unjha market in Mehsana , arrivals were reported at 6000 bags, down by 1000 bags from previous day and rsquo;s arrivals.

Trading Ideas:
--Jeera trading range for the day is 16120-16470.
--Jeera prices ended with losses amid good stock and hopes of higher sowing.

--Jeera sowing is seen higher during the coming season due to better prices and favourable weather conditions.
--At Unjha market in Mehsana , arrivals were reported at 6000 bags, down by 1000 bags from previous day and rsquo;s arrivals.
--In Unjha, a key spot market in Gujarat, jeera edged down by 205.75 Rupees to end at 16678.25 Rupees per 100 kg.

Courtesy: Kedia Commodities