Jeera August contract gained Rs 407.5 and settled at Rs 15370 per quintal on strong demand from overseas and local buyers ahead of the festive season, outweighing an increase in the domestic supplies after recent rise in prices. Demand is very good from local and overseas traders, and is expected to remain high in the coming weeks due to upcoming festivals. Worries that deficit rains could crimp production and tighten supplies, also boosted sentiment. Jeera is a winter crop, whose planting starts from October, and farmers depend on the monsoon to moisten the land for sowing. India's monsoon rains were 49 percent below average in the week ended July 4, widening the gap of an 18 percent shortfall in the previous week, data from the weather office showed on July 5. Around 15,000 bags of 60 kg each reached the Unjha market on Monday as compared with 8,000-9,000 bags last week. However, farmers increased the supplies in the domestic market after prices rose 9 percent since the start of this month. 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. 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%. In Unjha, a key spot market in Gujarat, jeera gained 589.15 rupees to end at 14966.65 rupees per 100 kg. The contract made intraday low of Rs 14942.5 a kg and high of Rs 15480 a kg. Support for jeera is at 15048 below that could see a test of 14727. Resistance is now seen at 15586 above that could see a resistance of 15802.
Jeera trading range for the day is 14726-15802.
Jeera ended higher on strong demand from overseas and local buyers ahead of the festive season
Worries that deficit rains could crimp production and tighten supplies, also boosted sentiment.
NCDEX accredited warehouses jeera stocks gained by 6 tonnes to 9255 tonnes.
In Unjha, a key spot market in Gujarat, jeera gained 589.15 rupees to end at 14966.65 rupees per 100 kg.
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