Jeera on NCDEX settled up by 1.42% at 16730 on short covering as support seen on lower output from the producing regions. Reports showed that the sowing of Jeera in Gujarat pegged at 278,000 hectare as against 295,000 hectare a year ago. The reports showed that 5,924 tons of jeera arrived during February 20-25 compared to 3,044 tons in the previous week. Jeera exports in India are likely to rise 22% to 120,000 tons in 2016-17 (Apr-Mar), compared with shipments of 98,700 tons a year ago, because of robust demand from overseas market and negligible stocks in other exporting nations. Jeera (Cumin) output in India may fall by 12 per cent to 387,000 tonnes during 2016-17 due to lower acreage and adverse weather conditions. The country had produced 438,000 tonne of the spice in 2015-16. Gujarat, the highest jeera-producing state in the country, has reported a fall in area under the crop by six per cent to 278,700 hectares in 2016-17, from 295,200 hectares in 2015-16, according to state agriculture department data. As per the second advance estimate of the Gujarat government, the state is estimating 212,000 tonnes of jeera production for the year 2016-17. Last year it was around 238,000 tonnes. This year, during the sowing and growing period, especially in December and January so far, the weather has not been favourable for jeera crop in Gujarat and Rajasthan, which are the top producing states. In Unjha, a key spot market in Gujarat, jeera edged down by -74.8 Rupees to end at 17328.55 Rupees per 100 kg. Technically now Jeera is getting support at 16490 and below same could see a test of 16250 level, And resistance is now likely to be seen at 16865, a move above could see prices testing 17000.

Trading Ideas:

# Jeera trading range for the day is 16250-17000.

# Jeera prices gained on short covering as support seen on lower output from the producing regions.

# Jeera output in India may fall by 12 percent to 387,000 tonnes during 2016-17 due to lower acreage and adverse weather conditions.

# Reports showed that the sowing of Jeera in Gujarat pegged at 278,000 hectare as against 295,000 hectare a year ago.

# In Unjha, a key spot market in Gujarat, jeera edged down by -74.8 Rupees to end at 17328.55 Rupees per 100 kg.