Jeera settled up 2.51% at 12850 on export demand, though large stocks and expectations of higher production kept the upside limited. However, the area under cultivation has expanded and yields are also likely to be good because of ample Monsoon rains, whereas expectations of higher production have limited the upside. As per market sources, around 80-85% of the sowing has already been completed in the major parts of Gujarat and Rajasthan.

Traders estimated that the current year Jeera production is estimated to be around 40-42 lakh bags in the current year, up almost 5-7 lakh bags from the year. This will also reduce the exporters demand in local mandies with the expectation of further decline in prices in the coming days. The latest data showed estimated that the Jeera stocks at 7 lakh bags against 9-10 lakh bags in the same period of last year. According to sources, the geo-political tensions in Syria and Turkey have led to a supply crunch in the global markets raising supply concerns from these two major exporting countries. Export orders have been diverted to India.

Production is also expected to fall in Syria and Turkey. Sources said that hopes of a higher production of the rabi crop in view of increase in its acreage could drag its demand. Favourable weather conditions, too, are aiding higher planting of jeera this year. In Unjha, a key spot market in Gujarat, jeera edged up by 100.45 rupees to end at 12842.1 rupee per 100 kg. Technically market is under fresh buying as market has witnessed gain in open interest by 2.55% to settled at 7128 while prices up 315 rupee, now Jeera is getting support at 12624 and below same could see a test of 12398 level, And resistance is now likely to be seen at 13012, a move above could see prices testing 13174.

Trading Ideas:

Jeera trading range for the day is 12394-13168.

Jeera ended with gains on export demand, though large stocks and expectations of higher production kept the upside limited

The area under cultivation has expanded and yields are also likely to be good because of ample Monsoon rains

Around 80-85% of the sowing has already been completed in the major parts of Gujarat and Rajasthan.

In Unjha, a key spot market in Gujarat, jeera edged up by 100.45 rupees to end at 12842.1 rupee per 100 kg.