Jeera settled up 0.51% at 10900 due to a fall in arrivals in spot markets and a rise in export demand. Demand from stockists as well as domestic and overseas buyers supported prices. However, comfortable supplies in the physical markets on the back of arrival pressure as well as huge carryover stocks capped sharp gains. Geo-political tensions in Syria and Turkey have led to a supply crunch in the global markets raising supply concerns from the two major exporting countries. Export orders are diverted to India. Production is also expected to fall in Syria and Turkey due to crop failure. Exports of Jeera between Apr-Dec 2013 stood at 96,500 tn, up 89% as against 50,944 tn between Apr-Dec 2012. According to IBIS India’s Jeera exports have crossed 1,00,000 tonnes till Feb’14. Production of Jeera in 2013-14 is expected around 45-50 lakh bags (55 kgs each), higher than 40-45 lakh bags last year. In Unjha mandi ~28000 bags arrival was seen and export demand remained at ~27000 bags. According to the latest data release by Gujarat Agriculture Board, the total acreage in the State has increased by 1.05 lakh hectares to 4.54 lakh hectares due to favourable weather . Traders estimate the total production of the spice to go up by 10 lakh bags to 46 lakh bags this year. Technically market is under fresh buying as market has witnessed gain in open interest by 11.63% to settled at 8523 while prices up 55 rupee, now Jeera is getting support at 10830 and below same could see a test of 10760 level, And resistance is now likely to be seen at 10980, a move above could see prices testing 11060.

Trading Ideas:

Jeera trading range for the day is 10760-11060.

Jeera prices ended with gains due to a fall in arrivals in spot markets and a rise in export demand.

Demand from stockists as well as domestic and overseas buyers supported prices

Political tensions in Syria and Turkey have led to a supply crunch in the global markets raising supply concerns from the two major exporting countries.

In Unjha, a key spot market in Gujarat, jeera edged up by 94.45 rupees to end at 10975 rupee per 100 kg.