Jeera June contract dropped Rs 57.5 and settled at Rs 12722.5 per quintal due profit booking tracking weak spot demand but downside was limited amid shrinking supplies. The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions in growing areas that could affect the productivity to some extent. Lower production in Turkey and Syria could support Indian rates. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes. Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year. As per Rajasthan Agricultural Ministry, the sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions.  The total arrivals of jeera decreased to 10,000 bags from 11,000 bags, while demand was seen for around 9,000 bags against 12,000 bags. Arrivals at Unjha fell to around 10,000-12,000 bags of 60 kg each from 15,000-17,000 bags daily at the start of this month. The total arrivals of jeera decreased to 9,000 bags from 10,000 bags, while demand was seen for around 11,000 bags against 9,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -12.5 rupees to end at 13460 rupees per 100 kg. The contract made intraday low of Rs 12635 a kg and high of Rs 12845 a kg. Support for jeera is at 12623 below that could see a test of 12524. Resistance is now seen at 12833 above that could see a resistance of 12944.

Trading Ideas:

Jeera trading range for the day is 12524-12944.

Jeera ended weak due profit booking tracking weak spot demand but downside was limited amid shrinking supplies

The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions

NCDEX accredited warehouses jeera stocks gained by 56 tonnes to 11123 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -12.5 rupees to end at 13460 rupees per 100 kg.