NCDEX Jeera under long liquidation Resistance seen at 14100

Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 3.42% to settled at 1440 while prices remain unchanged 0 rupees.

Now NCDEX Jeera is getting support at 14020 and below same could see a test of 13985 levels, and resistance is now likely to be seen at 14100, a move above could see prices testing 14145.

Jeera yesterday settled remain unchangeby 0% at 14060 amid subdued demand from domestic and overseas markets and forecast of a bigger crop this year due to higher acreage.

According to the second advance estimates for the rabi crop in Gujarat, Jeera production in the state is seen rising 56% (year on year) to 3.11 lakh tonnes in the 2019-20 season.

In the 2019-20 Rabi season, Jeera acreage in Gujarat as on January 27, 2020 is reported at 4.88 lakh hectares, higher by 40% from 3.47 lakh hectares a year ago.

According to Federation of Indian Spice Stakeholders (FISS) crop estimates, Jeera production to rise by 29% at 5.36 lakh tonnes from 4.17 lakh tonnes last year.

On export front, India exported 1.83 lakh tonnes in 2019-20 (April- January) an increase of 23% from the same period of last year. India exported around 0.13 lakh tonnes of Jeera in January 2020 which is 26% more than January 2019 at 0.10 lakh tonnes.

However, in January 2020, Jeera exports reported at 0.13 lakh tonnes, have been lower than 0.18 lakh tonnes recorded in the previous month.

Syria and Turkey are yet to come in the market and there was great opportunity for India to export during the new crop season as the sole supplier but that is also gone. Both Syria and Turkey's output is likely to double in 2020-21 (Jul-Jun).

Trading Ideas:
--Jeera trading range for the day is 13985-14145.
--Jeera prices dropped amid subdued demand from domestic and overseas markets and forecast of a bigger crop this year due to higher acreage.
--According to the second advance estimates for the rabi crop in Gujarat, Jeera production in the state is seen rising 56%

--Both Syria and Turkey's output is likely to double in 2020-21 (Jul-Jun).
--In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 Rupees to end at 14050 Rupees per 100 kg.

Courtesy: Kedia Commodities