Jeera market under fresh buying; Support seen at 18533


Technically Jeera market is under fresh buying as market has witnessed gain in open interest by 24.4% to settled at 12435 while prices up 720 rupees.

Now NCDEX Jeera is getting support at 18533 and below same could see a test of 18227 level, And resistance is now likely to be seen at 18993, a move above could see prices testing 19147.

Jeera prices gained backed by rising domestic and export demand at the spot market. Moreover, restricted supplies in the domestic spot market due to reports of lower production estimates in Gujarat too supported the uptrend.

A recent assessment by the Federation of Indian Spices Stakeholders in Udaipur, Rajasthan, has forecast India’s cumin seed production at 5.83 million bags of 40 kg each (233,280 tonnes) this year against 4.20 million bags of 40 kg each (168,320 tonnes) last year.

The latest spell of rainfall last week is estimated to have spoiled 30 per cent of the standing crop. Production estimates for 2016-17 are lower due to a decline in the jeera acreage in Gujarat. The Centre pegs production of jeera in the state at 221,000 tonnes, down 11 per cent from last year’s output of 238,000 tonnes.

The output is far lower than the normal of 346,000 tonnes in Gujarat in 2013-14. Acreage has fallen to 279,000 hectares this year from 286,000 hectares earlier. According to data, 33,110 tonnes of jeera arrived in the markets between March 1 and March 20, against 34,107 tonnes during the same period last year.

India exports an average of 15,000 tonnes of jeera during March, April and May. Industry players are expecting exports will cross 120,000 tonnes this year against 94,352 tonnes a year ago. Jeera exports increased 36.7 per cent to 93,724 tonnes during April- December 2016-17. — Neal Bhai Reports

Jeera market under fresh buying; Support seen at 18533 | Gold Silver Reports