Jeera settled down -0.74% at 16195 on expectation of higher production due to normal progressive monsoon in the major producing belts. Meanwhile, the quality issues and supply concerns from the production states keep the prices volatile. The demand for Indian jeera export may be lower for next 2 months but there is possibility of good demand after that as Syria and Turkey jeera may come to world market in August- September. According to latest spice board press release, cumin export is stood at 155,500 tonnes for 2014-15 period and earned foreign exchange worth Rs 1,838.20 crore while in 2013-14, the figures stood at 121,500 tonnes valued at Rs 1,600 crore. As per fourth advance estimate of Gujarat State, production is expected at 1.58 lt in 2014-15, which is 54.3 % lower, compared to last years’ production of 3.46 lakh tonnes. Jeera sowing recorded 2.64 lh, 42% less sowing compared to last year’s 4.54 lh in Gujarat last year. There is concern over production due to untimely rainfall in March in Gujarat and Rajasthan. As per Government data, 2.41 lh of cumin crop is damaged in Rajasthan. At Patan market estimated market supply was at 33 quintals, lower by 28 quintals from previous day’s arrivals. At Merta City (Raj.) market estimated market supply was at 400 quintals, down by 100 quintals as against previous day. Technically market is under long liquidation as market has witnessed drop in open interest by -2.11% to settled at 16716 while prices down -120 rupee, now Jeera is getting support at 15953 and below same could see a test of 15712 level, And resistance is now likely to be seen at 16563, a move above could see prices testing 16932.

Trading Ideas:

Jeera trading range for the day is 15710-16930.

Jeera prices ended with losses on expectation of higher production due to normal progressive monsoon in the major producing belts.

As per fourth advance estimate of Gujarat State, production is expected at 1.58 lt in 2014-15, which is 54.3 % lower.

NCDEX accredited warehouses jeera stocks dropped by 3 tonnes to 11224 tonnes.

In Unjha, a key spot market in Gujarat, jeera edged up by 121.45 rupees to end at 16521.45 rupee per 100 kg.