Jeera October contract dropped Rs 112.5 and settled at Rs 13507.5 per quintal on long liquidation triggered by strong arrivals, on anticipation of strong crop as heavy rains in Gujarat in the month of September increased soil moisture and this will help farmers for sowing Jeera in more areas. The total arrivals remained unchanged at 4,000 bags. Market sources said, anticipation of better sowing in the rabi sowing season on strong revival in monsoon triggered profit taking in Jeera. With export demand from Pakistan and domestic demand reported at the lower levels and apprehensions continuing over the rains in AP. However, improved rainfall and weak overseas demand restricted the upside. Some local demand has come from north India but overseas enquiries are still weak. The total arrivals remained unchanged at 4,000 bags, while demand was seen for around 4,000 bags against 5,000 bags. Most farmers in Gujarat start planting of jeera in October and recent rains have increased the moisture level in the soil, which means farmers could plant the crop in more areas and this is impacting sentiment. Rains in Gujarat were above normal in the week to Sept. 5 and more rains are expected in the next 2-3 days. In Unjha, a key spot market in Gujarat, jeera dropped -152.8 rupees to end at 14450 rupees per 100 kg. The contract made intraday low of Rs 13250 a kg and high of Rs 13612.5 a kg. Support for jeera is at 13301 below that could see a test of 13094. Resistance is now seen at 13663 above that could see a resistance of 13819.

Trading Ideas:

Jeera trading range for the day is 13095-13819.

Jeera tumbled sharply on long liquidation triggered by strong arrivals, on anticipation of strong crop as heavy rains

With export demand from Pakistan and domestic demand reported at the lower levels

NCDEX accredited warehouses jeera stocks dropped by 60 tonnes to 10032 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -152.8 rupees to end at 14450 rupees per 100 kg.