Jeera February contract dropped Rs 209 and settled at Rs 15505 a kg due to profit booking. However, low carryover stocks and anticipation of low production this year has limited the downside of the commodity. Traders have currently projected the total jeera production of 2010-11 at around 21 lakh bags against 29 lakh bags reported last year. The forecast of rains in the jeera growing areas in the last week of this month might cause damage to the standing crop thereby affecting the production. In Unjha, a key spot market in Gujarat, jeera gained 144.3 rupees to end at 14831.8 rupees per 100 kg. The contract made intraday low of Rs 15424 a kg and high of Rs 15710 a kg. Support for jeera is at 15383 below that could see a test of 15260. Resistance is now seen at 15669 above that could see a resistance of 15832.

Trading Ideas:

Jeera trading range is 15265-15837.

Jeera dropped due to profit booking but carryover stocks and anticipation of low production limited downside

Jeera is having resistance at 15669 and support at 15383 level.

NCDEX accredited warehouses jeera stocks rose 42 tonnes to 5813 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 144.3 rupees to end at 14831.8 rupees per 100 kg.