Jeera settled down -0.16% at 12525 driven by sluggish demand in the spot market against sufficient supplies. Further, expectations of higher production fuelled the downtrend. 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. The fresh arrivals are likely to begin from first week of February in Gujarat mandies. 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. Latest reports from the Spices Board peg exports at 67,500 tonnes up by 93 per cent in volume and value during April-September 2013 compared with the same period a year ago. 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 down by -17.2 rupees to end at 12664.45 rupee per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -1.5% to settled at 6705 while prices down -20 rupee, now Jeera is getting support at 12467 and below same could see a test of 12408 level, And resistance is now likely to be seen at 12572, a move above could see prices testing 12618.

Trading Ideas:

Jeera trading range for the day is 12408-12618.

Jeera ended with losses driven by sluggish demand in the spot market against sufficient supplies.

Sources estimated that the current year Jeera production is estimated to be around 40-42 lakh bags in the current year.

Sowing of jeera has gathered pace in Gujarat and a clear picture will be available in a week or two.

In Unjha, a key spot market in Gujarat, jeera edged down by -17.2 rupees to end at 12664.45 rupee per 100 kg.