Jeera September contract gained Rs 17.5 and settled at Rs 16270 per quintal due to less rains in Gujarat and as farmers reduced supplies to the domestic market ahead of the festive season. Gujarat, the country's top jeera producer, has received scanty rain so far, data with the India Meteorological Department shows. Jeera is a winter crop sown from October, and farmers depend on the rains to moisten the land for sowing. Monsoon plays a crucial role in the movement of farm commodities. As of now the deficit monsoon is supporting prices in spices and prices are likely to remain firm. As per the latest updates from the Spices Board of India, Jeera exports up 6% to 2,500 tonnes while volume is up by 5% to Rs 3,312.50 lakh during the April 2012.  As per the updates from the spot market sources, arrivals decreased to 8,000 bags during the week from 11,000 bags, while demand was seen for around 7,000 bags against 10,000 bags. Gujarat, the country's top Jeera producer, has received scanty rain so far. Jeera prices have gained both in futures and spot due to concerns over a low crop in Syria, the world's top producer of Jeera. Traders expect large export orders may be diverted to India from the international markets due to the supply squeeze in Syria. In Unjha, a key spot market in Gujarat, jeera gained 175 rupees to end at 16150 rupees per 100 kg. The contract made intraday low of Rs 16150 a kg and high of Rs 16480 a kg. Support for jeera is at 16120 below that could see a test of 15970. Resistance is now seen at 16450 above that could see a resistance of 16630.

Trading Ideas:

Jeera trading range for the day is 15970-16630.

Jeera rose due to less rains in Gujarat and as farmers reduced supplies to the domestic market ahead of festive season

As of now the deficit monsoon is supporting prices in spices and prices are likely to remain firm.

NCDEX accredited warehouses jeera stocks gained by 114 tonnes to 9923 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 175 rupees to end at 16150 rupees per 100 kg.