NCDEX Jeera under long liquidation Resistance seen at 16540

Technically Jeera market is under long liquidation as market has witnessed drop in open interest by 5.31% to settled at 2619 while prices down 15 rupees.

Now NCDEX Jeera is getting support at 16310 and below same could see a test of 16190 levels, and resistance is now likely to be seen at 16540, a move above could see prices testing 16650.

Jeera on NCDEX settled down by 0.09% at 16430 on late profit booking after prices gained 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. Arrivals of jeera in Gujarat is about 22,200 tn compared to 12,000 tn last year same period.

At Gondal(Guj.) market in Rajkot(Guj.), estimated market supply was at 700 quintals, down by 100 quintals as against previous day. At Rajkot market in Rajkot(Guj.), arrivals were reported at 425 quintal, lower by 300 quintal as against previous day. In Unjha, a key spot market in Gujarat, jeera edged up by 15.4 Rupees to end at 16632.7 Rupees per 100 kg.

Trading Ideas:
--Jeera trading range for the day is 16190-16650.
--Jeera dropped on late profit booking after 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 15.4 Rupees to end at 16632.7 Rupees per 100 kg.

Courtesy: Kedia Commodities