Jeera settled up 0.16% at 12525 recovering on late short covering after prices seen under pressure due to higher area under cultivation, expectations of increased production and subdued demand. Most of the traders have reduced their participation in local mandies due to possibility of timely arrival of new crop in major producing states. The fresh arrivals are likely to begin from first week of February in Gujarat mandies. Sources 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. With sowing being reported higher in the growing States of Gujarat and Rajasthan and weather being conducive for the crop growth, the uptrend may be limited. Sources anticipate exports to rise in coming months amidst reports of lower production in Turkey and Syria. Latest reports from the Spices Board peg exports at 67,500 tonnes up by 93 per cent in volume and value during April-September 2013 compared with the same period a year ago. In Unjha, a key spot market in Gujarat, jeera edged down by -61.1 rupees to end at 12669.45 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -5.03% to settled at 6960 while prices up 20 rupee, now Jeera is getting support at 12342 and below same could see a test of 12158 level, And resistance is now likely to be seen at 12637, a move above could see prices testing 12748.

Trading Ideas:

Jeera trading range for the day is 12149-12739.

Jeera settled up recovering on late short covering after prices seen under pressure due to higher area under cultivation.

Most of the traders have reduced their participation in local mandies due to possibility of timely arrival of new crop

The fresh arrivals are likely to begin from first week of February in Gujarat mandies.

In Unjha, a key spot market in Gujarat, jeera edged down by -61.1 rupees to end at 12669.45 rupee per 100 kg.