Jeera prices dropped as higher area under cultivation and prospects of increased production weighed on prices. There is some improvement in overseas demand as other leading producing countries are supplying less. India exported 67,500 tonnes of cumin seed during April-September 2013, up from 35,018 tonnes in the year-earlier period, data from the Spices Board of India showed. Farmers in the key cultivating states have raised the area under the cultivation due to ample rains in the monsoon season and favourable weather. Supplies from the new season crop are expected to hit the market from mid-February. Jeera is a winter crop sown from October. Farmers mainly depend on the rains to moisten the land for sowing. 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. However, market sources say that the area under jeera could drop this year as some farmers are expected to diversify to other crops such as pulses. Sowing of jeera has gathered pace in Gujarat and a clear picture will be available in a week or two. Total carryover stocks are currently estimated at 7 lakh bags against 10 bags last year. In Unjha, a key spot market in Gujarat, jeera edged up by 41.65 rupees to end at 12673.6 rupee per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -1.35% to settled at 6579 while prices down -2.5 rupee, now Jeera is getting support at 12485 and below same could see a test of 12430 level, And resistance is now likely to be seen at 12615, a move above could see prices testing 12690.

Trading Ideas:

Jeera trading range for the day is 12432-12692.

Jeera prices dropped as higher area under cultivation and prospects of increased production weighed on prices.

There is some improvement in overseas demand as other leading producing countries are supplying less.

India exported 67,500 tonnes of cumin seed during April-September 2013, up from 35,018 tonnes in the year-earlier period

In Unjha, a key spot market in Gujarat, jeera edged up by 41.65 rupees to end at 12673.6 rupee per 100 kg.