Jeera December contract gained Rs 50 and settled at Rs 15190 per quintal on the slow pace of sowing in Gujarat, the top producer of the spice, though subdued local purchases and weak overseas demand restricted the gains. Jeera is a winter crop for which sowing in Gujarat, the top producer, will continue through December. Sowing operations are lagging behind in parts of Gujarat due to lower monsoon rains in the state. The sowing is gaining pace in major growing regions in India. The expectation of strong export demand and decline in daily arrivals are likely to support the prices at lower side. India’s production for 2013 is estimated at 55000 tons against 43000 tons projected for the year 2012. The country’s domestic consumption and exports in 2013 is estimated as 43000 tons and 25000 tons respectively. India is the world leader in Jeera production followed by Turkey and Syria. Both Syria and Turkey are the stiff competitors for India in Jeera export market. Civil war in Syria may help India to boost its export. In India the jeera plant is grown as a rabi crop. In other Jeera cultivating countries in the Middle East, the crop is planted in the months of April and is harvested in the months of August and September. In Unjha, a key spot market in Gujarat, jeera gained 50.75 rupees to end at 14916.65 rupees per 100 kg. The contract made intraday low of Rs 15085 a kg and high of Rs 15242.5 a kg. Support for jeera is at 15103 below that could see a test of 15015. Resistance is now seen at 15260 above that could see a resistance of 15330.

Trading Ideas:

Jeera trading range for the day is 15016-15330.

Jeera rose on the slow pace of sowing though subdued local purchases and weak overseas demand restricted the gains.

Sowing operations are lagging behind in parts of Gujarat due to lower monsoon rains in the state.

NCDEX accredited warehouses jeera stocks dropped by 337 tonnes to 4042 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 50.75 rupees to end at 14916.65 rupees per 100 kg.