Jeera settled down -1.24% at 11150 as the area under cultivation expanded due to the late surge in monsoon rains over major producing areas of the western state of Gujarat. Moreover adequate supplies from producing regions mainly led to decline in jeera prices. Record output and huge carryover stocks have also pressurized prices. Area under jeera in Gujarat was reported at 455,000 ha as against 335,200 ha last year while about 390,000 ha were sown in Rajasthan. 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.  At Unjha market in Mehsana arrivals were reported at 7000 quintals, steady as against previous day’s arrival. At New Delhi market estimated market supply was at 12000 quintals, higher by 5000 quintals from previous day’s arrivals. At Rajkot market arrivals were reported at 610 quintals, up by 128 quintals as compared to previous day. Sources expect arrivals to remain moderate but till exports pick up significantly, trend likely to remain slight weak as of now. The export prices are at $2.93 per kg, gaining by 10% over last one month. Production of Jeera in 2013-14 is expected around 45-50 lakh bags (55 kgs each), higher than 40-45 lakh bags last year. Technically market is under fresh selling as market has witnessed gain in open interest by 1.52% to settled at 3213 while prices down -140 rupee, now Jeera is getting support at 11085 and below same could see a test of 11025 level, And resistance is now likely to be seen at 11235, a move above could see prices testing 11325.

Trading Ideas:

Jeera trading range for the day is 11025-11325.

Jeera prices dropped as the area under cultivation expanded due to the late surge in monsoon rains over major producing areas.

Moreover adequate supplies from producing regions mainly led to decline in jeera prices.

NCDEX accredited warehouses jeera stocks gained by 27 tonnes to 318 tonnes.

In Unjha, a key spot market in Gujarat, jeera remains unchanged at0 rupees to end at 11150 rupee per 100 kg.