Jeera yesterday settled down -0.95% at 13312.5 as expectations of better sowing in the leading cultivating state due to ample rains weighed. Export demand is good and is expected to remain firm in the short term because supplies from other leading producers are negligible. Gujarat, the top jeera producer in India, has received above average rainfall so far in the monsoon season. Jeera is a winter crop sown from October and farmers depend on rains to moisten the land for sowing. In Unjha mandi ~8000 bags arrival was seen and demand remained at ~5000 bags. Exports of Jeera in 2012 - 2013 stood at 79,900 tn, an increase of 75%.Production of Jeera in 2012-13 is expected around 40-45 lakh bags, marginally higher than 40 lakh bags last year. Carryover stocks from 2011-12 harvest were around 8-9 lakh bags. Good demand is being witnessed in Jeera offtakes from global markets edges up after Ramadan. Prices are expected to hold on amid good overseas demand and falling arrivals. Demand is moderating in local markets now but prices continue to linger just under their four-month highs as the sentiments still remain positive amid favorable global offtake. Spot Jeera markets are still witnessing a good activity amid renewed buying interest. Heavy rainfall has been witnessed in few regions Gujarat though no major impact of the same has been seen so far. In Unjha, a key spot market in Gujarat, jeera edged up by 120 rupees to end at 13600 rupee per 100 kg. Now Jeera is getting support at 13160 and below same could see a test of 13007 level, And resistance is now likely to be seen at 13558, a move above could see prices testing 13803.

Trading Ideas:

Jeera trading range for the day is 13010-13806.

Jeera dropped as expectations of better sowing in the leading cultivating state due to ample rains weighed.

Export demand is good and is expected to remain firm because supplies from other leading producers are negligible.

NCDEX accredited warehouses jeera stocks dropped by 201 tonnes to 4796 tonnes.

In Unjha, a key spot market in Gujarat, jeera edged up by 120 rupees to end at 13600 rupee per 100 kg.