Jeera September contract dropped Rs 149 and settled at Rs 15621 per quintal due to absence of demand despite of low arrivals. Low arrivals are expected to continue but traders are waiting for demand to rise that could support the prices. Reports of adverse weather conditions in other major producers like Turkey and Syria have created apprehensions of lower output there and a possibility of delayed arrivals, originally scheduled from end-June onwards. Syrian production expected at 40000 tonnes and that in Turkey lower at 12-15000 tonnes. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes. Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-June 2011 have fallen by 26% from 157,850 MT in 2010 to 116,900 MT in 2011. Jeera exports fell by 46% from 10,600 MT to 5,750 MT during the same period. The total fresh arrivals of jeera stood steady at 5,000 bags while demand was seen for around 7,000 bags against 12,000 bags on previous close. In Unjha, a key spot market in Gujarat, jeera gained 31.1 rupees to end at 15688.25 rupees per 100 kg. The contract made intraday low of Rs 15590 a kg and high of Rs 15845 a kg. Support for jeera is at 15526 below that could see a test of 15430. Resistance is now seen at 15781 above that could see a resistance of 15940.

Trading Ideas:

Jeera trading range is 15430-15940.

Jeera dropped due to absence of demand despite of low arrivals

Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes.

NCDEX accredited warehouses jeera stocks gained by 317 tonnes to 11310 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 31.1 rupees to end at 15688.25 rupees per 100 kg.