Jeera October contract gained Rs 42.5 and settled at Rs 13855 per quintal on short covering by the traders on firm spot demand along with thin arrivals in the local markets. Expectations of rising exports in the coming days also supported the futures. According to markets sources about 75% exports target has already been achieved due to a supply crunch in the global markets. Around 10 lakh bags of Jeera are reported across India. Supply concerns from Syria and Turkey still exists. Expectations are that export orders may still be diverted to India from the international markets due to lack of supplies from Syria on back of the ongoing civil war. Good rains in Gujarat, thereby expectations of better sowing prospects ahead of the rabi sowing can pressurize the prices. India Jeera production in 2011-12 is expected to be around 40 lakh bags. In 2010-11 production was 29 lakh bags(each bag weighs 55 kgs). Exports of Jeera in April 2012 stood at 2,500 tons as compared to 2,369 tonnes in April 2011, an increase of 6%, according to Spices Board of India. The total arrivals remained unchanged at 3,000 bags, while demand was seen for around 8,000 bags against 5,000 bags. In Unjha, a key spot market in Gujarat, jeera gained 19.7 rupees to end at 14466.3 rupees per 100 kg. The contract made intraday low of Rs 13800 a kg and high of Rs 13980 a kg. Support for jeera is at 13777 below that could see a test of 13698. Resistance is now seen at 13957 above that could see a resistance of 14058.

Trading Ideas:

Jeera trading range for the day is 13698-14058.

Jeera rose on short covering by the traders on firm spot demand along with thin arrivals in the local markets.

Expectations of rising exports in the coming days also supported the futures.

NCDEX accredited warehouses jeera stocks gained by 75 tonnes to 9230 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 19.7 rupees to end at 14466.3 rupees per 100 kg.