NCDEX Jeera Tips

Jeera pared the last session's relief recovery on long liquidations. The NCDEX Jeera most active November contract ended the day at Rs 14330, down Rs 170 or 1.17% from last close. The spot Jeera quoted steady in the range of Rs 13,000-13,875 per quintal at Unjha Mandi, best quality quoted in the range of Rs 14,250-14,875 per quintal. The total arrivals slumped to 4,000 bags from 6,000 bags, while demand decreased to 6,000 bags from 6,500 bags.

Jeera recovered from the lows on Monday on short covering lead by expectation of export buying in near term amid weak stocks. Prices swelled September -October mid, lead by strong export buying. However, liquidation was witnessed at higher side as exporters stayed away due to high prices. Not much demand by stockiest and physical traders was reported at current levels as comfortable rainfall in the major Jeera producing states such as Rajasthan and Gujarat raised the prospects of bumper Jeera production in the coming year. Expectations are that export orders may still be diverted to India from the international markets due to lack of supplies from Syria on back of the ongoing civil war is expected to cushion prices at lower levels.

Jeera settled up 0.52% on last day, after correcting 8% to Rs 14,300 in two weeks, from the high of Rs 15,700 level. The contract fell back on Tuesday with counter hitting the low at Rs 14,262 and ended the day at Rs 14330, down Rs 170 or 1.17% from last close. The open interest declined 543 positions, indicating long liquidations.