Jeera yesterday settled up 0.13% at 13540 on late short covering after prices dropped on expectations of better sowing and on higher-than-expected supplies in the domestic markets. Sentiment looks weak because stocks are good and supplies are above expectations in 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 mainly depend on the rains to moisten the land for sowing. In Unjha mandi ~7000 bags arrival was seen and demand remained at ~8000 bags. Market sources suggested that the total daily arrival of jeera have been increased from 4-5 bags in the last week to 8-9 thousand bags due to strong selling by stockiest at higher levels. The spot prices of jeera have witnessed strong gains in the last week on the account of steady export enquiries from Middle East. The current carryover stocks of jeera were reported higher at 12 lakh bags as on 31st August 2013 against 9-10 lakh bags that were reported last year on the same date. The strong carryover stocks will encourage strong stockiest selling at every surge in domestic market. In Unjha, a key spot market in Gujarat, jeera edged down by -25 rupees to end at 13664 rupee per 100 kg. Technically market is under fresh buying as market has witnessed gain in open interest by 6% to settled at 12081 while prices up 17.5 rupee, now Jeera is getting support at 13422 and below same could see a test of 13304 level, And resistance is now likely to be seen at 13664, a move above could see prices testing
13788.

Trading Ideas:

Jeera trading range for the day is 13296-13782.

Jeera gains on late short covering after prices dropped on expectations of better sowing and on higher-than-expected supplies

Sentiment looks weak because stocks are good and supplies are above expectations in the lean season.

NCDEX accredited warehouses jeera stocks gained by 18 tonnes to 3692 tonnes.

In Unjha, a key spot market in Gujarat, jeera edged down by -25 rupees to end at 13664.45 rupee per 100 kg.