Jeera September contract gained Rs 322.5 and settled at Rs 16382.5 per quintal due to a decline in spot supplies but rains in parts of Gujarat, the country's top producer, which would improve soil moisture, restricted the upside. Farmers are not selling their stocks anticipating better prices. Expectations are that large export orders may be diverted to India from the international markets due to the ongoing civil war in Syria which is hampering supplies. Export demand from Bangladesh, Pakistan and other countries may support the prices at lower levels. Production in Syria and Turkey is being reported around 1,000 tonnes and around 5,000 tonnes, lesser than expectations. Jeera prices in the international market of Indian origin are being offered at $3,000/tn (c&f) while Syria and Turkey are not offering their produce. 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. Gujarat has received light rains over the past 2-3 days, but overall the monsoon has been weak so far. Some areas in Gujarat and Saurashtra are expected to receive rains in the next 2-3 days, the weather office said in a statement. Export enquires were very thin as everyone was expecting a correction in prices. In Unjha, a key spot market in Gujarat, jeera dropped -153.2 rupees to end at 16294.3 rupees per 100 kg. The contract made intraday low of Rs 15810 a kg and high of Rs 16382.5 a kg. Support for jeera is at 16001 below that could see a test of 15619. Resistance is now seen at 16573 above that could see a resistance of 16764.
Jeera trading range for the day is 15620-16764.
Jeera ended with gains due to a decline in spot supplies but rains in Gujarat which would improve soil moisture restricted upside.
Farmers are not selling their stocks anticipating better prices.
NCDEX accredited warehouses jeera stocks gained by 138 tonnes to 9393 tonnes.
In Unjha, a key spot market in Gujarat, jeera dropped -153.2 rupees to end at 16294.3 rupees per 100 kg.