Jeera June contract dropped Rs 107.5 and settled at Rs 13260 per quintal on profit-taking, supported by estimates of higher output, though some fresh export inquiries limited the downside. Export demand is expected to improve in the coming weeks because of lack of supplies from Syria and Turkey. Local demand is subdued but export inquiries come at lower levels. Jeera prices are expected to trade in a range for around a month as overseas demand has not picked up yet. Jeera supplies were at 10,000-12,000 bags of 60 kg each on Tuesday as against 8,000 on Monday in Unjha. Traders are expecting that the total production of Jeera in the current year is expected to be around 34 -35 lakh bags, up 1 lakh bags from the last year. This is mainly due to better crop productivity in some areas of Gujarat and quality is poor in Rajasthan. The counter may witness some bargain buying on some export orders in long term as supply constraints exits in Syria, Turkey. As per market sources, the spot mandies of jeera have reported the record arrivals of around 2.50 lakh bags in the last week. This was mainly due to ample carryover stocks of around 8-10 lakh bags of old jeera in local mandies along with anticipation of strong jeera production in the current year. In Unjha, a key spot market in Gujarat, jeera dropped -30.9 rupees to end at 13475 rupees per 100 kg. The contract made intraday low of Rs 13180 a kg and high of Rs 13400 a kg. Support for jeera is at 13160 below that could see a test of 13060. Resistance is now seen at 13380 above that could see a resistance of 13500.

Trading Ideas:

Jeera trading range for the day is 13060-13500.

Jeera dropped on profit-taking, supported by estimates of higher output, though some fresh export inquiries limited the downside.

Local demand is subdued but export inquiries come at lower levels.

NCDEX accredited warehouses jeera stocks gained by 12 tonnes to 6929 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -30.9 rupees to end at 13475 rupees per 100 kg.