Jeera yesterday settled down -1.3% at 13525 due to higher stocks, expectations of better sowing on good rains and higher-than-expected supplies. Export demand is lower-than-expected and stocks are high. Supplies still have been good despite the lean season. Gujarat, the top jeera producer in India, has received above average rainfall so far this monsoon. Jeera is a winter crop sown from October. Farmers depend on rains to moisten the land for sowing. Good demand is being witnessed in Jeera. Prices are expected to hold on amid good overseas demand and falling arrivals. The futures have also witnessed good upside in last few days and further rise is possible given the persistent worries over supplies from Syria in world markets. Heavy rainfall has been witnessed in few regions Gujarat though no major impact of the same has been seen so far. Spot prices gained nearly Rs 100 to quote at Rs 13700 per quitnla in Unjha today. The Cumin crop in Iran is failure due to bad weather and thus would support the Indian cumin seed market in long term. The total Jeera production is seen around 34-35 lakh bags in the current year, up almost 1-2 lakh bags from the last year. This is mainly due to sowing in Rajasthan and better recovery of Jeera from Gujarat. Cumin exports increased by 76 per cent to 79,900 tonnes in 2012-13 from 45,500 tonnes previous year valued at Rs 1093.17 crore, up 70% from last year. In Unjha, a key spot market in Gujarat, jeera edged down by -80.55 rupees to end at 13689 rupee per 100 kg. Now Jeera is getting support at 13434 and below same could see a test of 13343 level, And resistance is now likely to be seen at 13652, a move above could see prices testing 13779.

Trading Ideas:

Jeera trading range for the day is 13343-13777.

Jeera fell due to higher stocks, expectations of better sowing on good rains and higher-than-expected supplies.

Supplies still have been good despite the lean season.

NCDEX accredited warehouses jeera stocks gained by 45 tonnes to 3674 tonnes.

In Unjha, a key spot market in Gujarat, jeera edged down by -80.55 rupees to end at 13689.45 rupee per 100 kg.