Jeera October contract dropped Rs 185 and settled at Rs 14720 per quintal as rains in top producer state, Gujarat, raised hopes of better sowing in the season while a decline in spot demand also weighed. Improved rainfall activities in Gujarat and Rajasthan could pressurize market sentiments to some extent as that remains critical this month for better sowing prospects of the new crop in coming months. Demand is expected to pick up in coming weeks however as traders wait for some more dips for the commodity. Festive season demand are set to pick up Overall lower rainfall activities in Gujarat and Rajasthan this year could have a long term Bullish impact on the prices. Rains at this stage would be beneficial for the sowing activities due to start over next few months Traders expect high volatility to continue in near term but medium to long term trend looks Bullish as exports are expected to pick up in coming months amidst lower production reports in Turkey and Syria. Latest report from Spice Board of India indicates Spices exports have risen by 49% from 39396 MT in April 2011 to 58685 MT in April 20122. Jeera exports rose by 6% from 2369 MT in April 2011 to 2500 MT in April 2012. The total arrivals increased to 4,000 bags from 2,000 bags, while demand was seen for around 3,200 bags against 7,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -2.7 rupees to end at 15449.55 rupees per 100 kg. The contract made intraday low of Rs 14540 a kg and high of Rs 14920 a kg. Support for jeera is at 14533 below that could see a test of 14347. Resistance is now seen at 14913 above that could see a resistance of 15107.

Trading Ideas:

Jeera trading range for the day is 14347-15107.

Jeera fell as rains in top producer state, Gujarat, raised hopes of better sowing in the season

Improved rainfall activities in Gujarat and Rajasthan could pressurize market sentiments

NCDEX accredited warehouses jeera stocks gained by 178 tonnes to 11049 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -2.7 rupees to end at 15449.55 rupees per 100 kg.