Jeera settled up 0.42% at 12550 on fresh export demand, though expectations of higher production and large stocks limited the upside. Stocks from the old crop are large and production is also likely to be higher than the previous year. Supplies from the new season crop are expected to hit the market from mid-February. Export demand is good and could improve further in coming days, but upside will be limited. Area under jeera cultivation has expanded this season and we expect a good crop. Jeera sowing has come to an end in the key cultivating areas. Jeera, or cumin seed, is a winter crop sown from October and farmers mainly depend on rains to moisten the land for sowing. 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. Traders anticipate exports to rise in coming months amidst reports of lower production in Turkey and Syria. In Unjha, a key spot market in Gujarat, jeera edged up by 12.2 rupees to end at 12681.65 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -1.43% to settled at 6834 while prices up 52.5 rupee, now Jeera is getting support at 12450 and below same could see a test of 12350 level, And resistance is now likely to be seen at 12625, a move above could see prices testing 12700.

Trading Ideas:

Jeera trading range for the day is 12348-12698.

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

Stocks from the old crop are large and production is also likely to be higher than the previous year.

Supplies from the new season crop are expected to hit the market from mid-February.

In Unjha, a key spot market in Gujarat, jeera edged up by 12.2 rupees to end at 12681.65 rupee per 100 kg.