Jeera June contract dropped Rs 80 and settled at Rs 13182.5 per quintal due to estimates of higher output though export demand and a drop in local supplies limited the downside. Export demand is expected to improve in the coming weeks because of a lack of supplies from Syria and Turkey. Daily supplies have fallen to 8,000-10,000 bags of 60 kg each as against 18,000-20,000 bags last week. Moreover, poor quality of Jeera in Rajasthan mandis might also encourage the strong demand of Gujarat quality of Jeera in local mandis. This has also witnessed some gains in the futures market. Supply constraints exits in Syria, Turkey, therefore expecting some export demand in long term. The daily Jeera arrivals in the Unjha mandi had slipped to 10,000-11,000 bags, from 17,000-18,000 bags previous week. Traders have reported the total Jeera production of around 34-35 lakh bags in the current year, up almost 1-2 lakh bags from the last year. This is mainly due to strong productivity in major Jeera growing areas of Gujarat. 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. Good sowing reports from Gujarat and Rajasthan keeps the production prospects good. In Unjha, a key spot market in Gujarat, jeera gained 93.9 rupees to end at 13568.9 rupees per 100 kg. The contract made intraday low of Rs 13130 a kg and high of Rs 13250 a kg. Support for jeera is at 13125 below that could see a test of 13068. Resistance is now seen at 13245 above that could see a resistance of 13308.

Trading Ideas:

Jeera trading range for the day is 13068-13308.

Jeera dropped due to estimates of higher output though export demand and a drop in local supplies limited the downside.

Export demand is expected to improve in the coming weeks because of a lack of supplies from Syria and Turkey.

NCDEX accredited warehouses jeera stocks gained by 144 tonnes to 7073 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 93.9 rupees to end at 13568.9 rupees per 100 kg.