Jeera August contract gained Rs 455 and settled at Rs 14420 per quintal due to a decline in the daily spot supplies and on domestic demand. Subdued rains in Gujarat state, the leading producer also supported the upside in the spice. There is good demand in the spot market from local buyers but supplies are weak and this is pushing prices up. Jeera is a winter crop, whose planting starts from October, and farmers depend on the monsoon to moisten the land for sowing. There are reports of lower output of jeera in Syria and Turkey in 2012. Fresh arrivals from Syria have commenced while harvesting of Jeera in Turkey will commence shortly. Jeera prices in the international market of Indian origin are being offered at $2,600/tonne(c&f) while Syria is offering its produce at $3,100/tonne (fob). Carryover stocks of jeera in the domestic market is expected to be around 7-8 lakh bags as compared to 4-5 lakh bags in the last year. According to Spices Board of India, exports of Jeera during April 2011- March 2012 stood at 45,500 tonnes as compared to 32,500 tonnes in 2010-11, an increase of 40%. The total arrivals of jeera decreased to 6,000 bags from 9,000 bags while demand improved to 9,000 bags against 7,000 bags on the previous day. Total Jeera arrivals in the Jodhpur Mandi in the state of Rajasthan stood at 500 bags. In Unjha, a key spot market in Gujarat, jeera gained 141.85 rupees to end at 14142.9 rupees per 100 kg. The contract made intraday low of Rs 13990 a kg and high of Rs 14420 a kg. Support for jeera is at 14133 below that could see a test of 13847. Resistance is now seen at 14563 above that could see a resistance of 14707.
Jeera trading range for the day is 13847-14707.
Jeera ended higher due to a decline in the daily spot supplies and on domestic demand.
There is good demand in the spot market from local buyers but supplies are weak and this is pushing prices up
NCDEX accredited warehouses jeera stocks gained by 42 tonnes to 9294 tonnes.
In Unjha, a key spot market in Gujarat, jeera gained 141.85 rupees to end at 14142.9 rupees per 100 kg.