Jeera March contract dropped Rs 405 and settled at Rs 14112.5 per quintal triggered by higher area under cultivation and favourable weather conditions at growing regions. Total production of the spice current year is estimated at 34-35 lakh bags against 32-33 lakh bags last year. This is mainly on the account of strong production estimates in Gujarat. The total carryover stock was estimated at around 8-9 lakh bags, unchanged from last year. Arrivals are weak in local mandis and export demand is likely to fetch in coming days as Syria and Turkey supply constraints exits. According to markets sources about 75% exports target has already been achieved due to a supply crunch in the global markets. Higher stocks for delivery on the exchange warehouses may pressurize prices. Jeera is grown as a rabi crop in India and it is also grown well in sub-tropical climate too, best suited for sandy soil. It requires less water and more cold for its better growth with ideal temperature of 25 to 30 degree. The area under coverage and climate condition is very crucial for the yield of the crop. Jeera crop is highly sensitive to rain, if rain occurs during harvesting time (February to March) quality of the Jeera will be badly affected besides quantity damage (due to fungal diseases). The total arrivals stood steady at 4,000 bags, while demand was seen around 7,000 bags against 5,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -69.4 rupees to end at 14527.25 rupees per 100 kg. The contract made intraday low of Rs 14085 a kg and high of Rs 14490 a kg. Support for jeera is at 13968 below that could see a test of 13824. Resistance is now seen at 14373 above that could see a resistance of 14634.

Trading Ideas:

Jeera trading range for the day is 13824-14634.

Jeera ended lower triggered by higher area under cultivation and favourable weather conditions at growing regions.

Total production of the spice current year is estimated at 34-35 lakh bags against 32-33 lakh bags last year.

The area under coverage and climate condition is very crucial for the yield of the crop.

In Unjha, a key spot market in Gujarat, jeera dropped -69.4 rupees to end at 14527.25 rupees per 100 kg.