Jeera January contract gained Rs 119 and settled at Rs 16630 per quintal on concerns over the quality of the new crop and on a squeeze in spot supplies. Traders expect unfavourable weather during the initial phase of sowing to hit the quality of the new crop. Supplies from the fresh harvest usually start from February. Delayed winter and unfavourable weather during November to December in Gujarat is expected to hit quality of the crop. As per latest release from Rajasthan Agriculture Ministry, as of December 20th 2011, Jeera acreage in Rajasthan was 3.03 lakh hectares, down from near 3.30 lakh hectares compared to the same period a year ago. This was due to high temperature in major producing areas such Jalore , Nagaur and Bikaner during the November month. Traders mentioned that the total jeera production is likley at 24-25 lakh bags in the current year , down almost 4-5 lakh bags from the last year. Moreover, receding carryover stocks in major mandies might also add some buying in futures market. The total stocks were reported at 2 lakh bags against 7 lakh bags that were reported last year in the same time. In Unjha, a key spot market in Gujarat, jeera gained 438.9 rupees to end at 15983.35 rupees per 100 kg.. The contract made intraday low of Rs 16500 a kg and high of Rs 16875 a kg. Support for jeera is at 16462 below that could see a test of 16293. Resistance is now seen at 16837 above that could see a resistance of 17043.

Trading Ideas:

Jeera trading range is 16293-17043.

Jeera rose on concerns over the quality of the new crop and on a squeeze in spot supplies

Traders expect unfavourable weather during the initial phase of sowing to hit the quality of the new crop.

NCDEX accredited warehouses jeera stocks dropped by 30 tonnes to 7927 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 438.9 rupees to end at 15983.35 rupees per 100 kg.