Jeera September contract dropped Rs 65 and settled at Rs 16925 per quintal as farmers increased supplies in the domestic market fearing a further drop in prices amid subdued demand. Farmers in the domestic market have held back supplies on hopes of a further rise in prices while supplies from other origins have also been thin due to lower stocks. Jeera is a winter crop sown from October, and farmers depend on the rains to moisten the land for sowing. Expectations of improved overseas sales from India due to restricted supplies from Syria and Turkey and lower domestic arrivals are expected to keep jeera prices firm. In April, cumin exports rose 6 percent from a year ago to 2,500 tonnes. The total arrivals of jeera increased to 1,200 bags from 1,000 bags, while demand was seen for around 15,000 bags against 11,000 bags on Saturday. 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 Spices exports have risen by 49% from 39396 MT in April 2011 to 58685 MT in April 20122. Jeera exports rose by 6% from 2369 MT in April 2011 to 2500 MT in April 2012. 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 dropped -80 rupees to end at 16500 rupees per 100 kg. The contract made intraday low of Rs 16652.5 a kg and high of Rs 17220 a kg. Support for jeera is at 16645 below that could see a test of 16365. Resistance is now seen at 17213 above that could see a resistance of 17500.
Jeera trading range for the day is 16365-17501.
Jeera dropped as farmers increased supplies in the domestic market fearing a further drop in prices
Farmers in the domestic market have held back supplies on hopes of a further rise in prices
NCDEX accredited warehouses jeera stocks gained by 33 tonnes to 10153 tonnes.
In Unjha, a key spot market in Gujarat, jeera dropped -80 rupees to end at 16500 rupees per 100 kg.
- Decision on gas price revision taken under RIL’s coercion: Dasgupta
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell