Jeera June contract gained Rs 337.5 and settled at Rs 13042.5 per quintal on tighter supplies although weak export demand kept a lid on the gains. Jeera spot arrivals were reduced to 9,000-10,000 bags this week. A rise in export demand is expected in coming days and it could lead to gain in prices of spot Jeera. The total domestic production of Jeera in the present year is estimated to be in the range of 32-33 lakh bags, against 28 lakh bags produced last year. According to the agriculture ministry, in Gujarat, Jeera was sown on 2.65 lakh hectares, compared with 1.30 lakh hectares last year. The total production in Gujarat is expected at 12-13 lakh bags, while in Rajasthan it is estimated to be 10 lakh bags. Lower arrivals of jeera in the spot market as the season is heading towards the end could push up demand. According to Spices Board of India, jeera exports during April 2011- January 2012 stood at
34,500 tons as compared to 22,450 tons same period, previous year. India is expected to produce around 40 lakh bags of jeera in 2011-12 as compared to 29 lakh bags in 2010-11. The lower acreage under jeera in Syria and Turkey is likely to support the prices of the commodity in near term. In Unjha, a key spot market in Gujarat, jeera dropped -12.5 rupees to end at 13460 rupees per 100 kg. The contract made intraday low of Rs 12647.5 a kg and high of Rs 13075 a kg. Support for jeera is at 12768 below that could see a test of 12494. Resistance is now seen at 13196 above that could see a resistance of 13349.

Trading Ideas:

Jeera trading range for the day is 12494-13350.

Jeera gained on tighter supplies although weak export demand kept a lid on the gains

Jeera spot arrivals were reduced to 9,000-10,000 bags this week.

NCDEX accredited warehouses jeera stocks dropped by 54 tonnes to 11069 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -12.5 rupees to end at 13460 rupees per 100 kg.