Jeera March contract gained Rs 68 and settled at Rs 13460 per quintal
on short covering after hitting a contract low in early trade. Supplies
in the spot market rose on the back of a good crop. As per Rajasthan
Agricultural Ministry, the sowing area till 20th Dec had been reported
at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of
crops in both states however expected to fall due to adverse weather
conditions as per reports. Exporters are reportedly waiting for the new
crop for creating fresh demand in the mandis. The better crop
expectations from Gujarat and Rajasthan could be hampered by reports of
adverse weather conditions in growing areas that could affect the
productivity to some extent as per traders. Lower production in Turkey
and Syria could support Indian rates. Indian production expected at
28-30 lakh bags translating to more than 1.5 lakh tonnes. Latest report
from Spice Board of India indicates estimated Spices exports for
April-Nov 2011 have fallen by 5% from 372010 MT in 2010 to 351900 MT in
2011. Jeera exports rose by 28% from 20750 MT to 26500 MT in same
period. The total arrivals of jeera decreased to 22,000 bags from
24,000 bags, while demand was seen for around 14,000 bags. In Unjha, a
key spot market in Gujarat, jeera dropped -23.75 rupees to end at
13834.6 rupees per 100 kg. The contract made intraday low of Rs 13350 a
kg and high of Rs 13637.5 a kg. Support for jeera is at 13328 below
that could see a test of 13195. Resistance is now seen at 13615 above
that could see a resistance of 13770.

Trading Ideas:

Jeera trading range for the day is 13196-13770.

Jeera rebounded on short covering even though supplies in the spot market rose on the back of a good crop

The sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year

NCDEX accredited warehouses jeera stocks dropped by 324 tonnes to 5121 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -23.75 rupees to end at 13834.6 rupees per 100 kg.