Jeera March contract gained Rs 32.5 and settled at Rs 13760 per quintal on short covering after prices dropped due to higher area under cultivation and subdued demand from local buyers. Increase in seeded area and favourable weather conditions are likely to keep prices under pressure. Prospect of new crop coming in couple of months is keeping pressure on prices and limiting its upside movement. Good weather condition reported in Gujarat for progressing Jeera crop and expecting better crop if it will continue another 15 days ahead. Due to this reason prices were down in the market. 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. As per latest data the total production of Jeera in the current year is estimated at 34-35 lakh bags against 32-33 lakh bags that were reported last year. This is mainly on the account of strong production estimates of Gujarat. While the total carryover stock were estimated at around 8-9 lakh bags, unchanged from last year. The total arrivals decreased to 2,500 bags from 3,000 bags, while demand was seen around 4,000 bags against 6,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -92 rupees to end at 14340.5 rupees per 100 kg. The contract made intraday low of Rs 13650 a kg and high of Rs 13800 a kg. Support for jeera is at 13673 below that could see a test of 13587. Resistance is now seen at 13823 above that could see a resistance of 13887.

Trading Ideas:

Jeera trading range for the day is 13587-13887.

Jeera ended with gains on short covering after prices dropped due to higher area under cultivation and subdued demand

Increase in seeded area and favourable weather conditions are likely to keep prices under pressure.

According to sources about 75% exports target has already been achieved due to a supply crunch in global markets.

In Unjha, a key spot market in Gujarat, jeera dropped -92 rupees to end at 14340.5 rupees per 100 kg.