Jeera September contract dropped Rs 44 and settled at Rs 15280 per quintal as trend remained weak as closure of Mandis for few days from the Festival and lack of export demand kept pressure on the market sentiments. Traders expect short term trend to remain volatile till exports pick up. Rains in Gujarat kept trading activities on the lower side. 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. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes.  Export demand from US and EU could also rise at these lower levels in coming weeks and that could have a moderate bullish impact on the prices. 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 arrivals of jeera stood steady at 7,000 bags and demand was reported for 6,500 bags. In Unjha, a key spot market in Gujarat, jeera dropped -0.4 rupees to end at 15500 rupees per 100 kg. The contract made intraday low of Rs 15226 a kg and high of Rs 15468 a kg. Support for jeera is at 15181 below that could see a test of 15083. Resistance is now seen at 15423 above that could see a resistance of 15567.

Trading Ideas:

Jeera trading range is 15083-15567.

Jeera dropped due to lack of export demand kept pressure on the market sentiments

Low arrivals are expected to continue but traders are waiting for demand to rise that could support prices

NCDEX accredited warehouses jeera stocks dropped by 64 tonnes to 11538 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -0.4 rupees to end at 15500 rupees per 100 kg.