Jeera April contract dropped Rs 65 and settled at Rs 11915 per quintal on higher arrivals from the fresh crop along with ample supply. Production of Jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year. As per Rajasthan Agricultural Ministry, the sowing area till 20th Dec had been reported at
3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions as per reports. Exporters are reportedly waiting for the new crop for creating fresh demand in the mandis. The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions in growing areas that could affect the productivity to some extent as per traders. Lower production in Turkey and Syria could support Indian rates. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes. In Unjha, a key spot market in Gujarat, jeera dropped -51.45 rupees to end at 12428.55 rupees per 100 kg. The contract made intraday low of Rs 11902.5 a kg and high of Rs 12102.5 a kg. Support for jeera is at 11844 below that could see a test of 11773. Resistance is now seen at 12044 above that could see a resistance of 12173.

Trading Ideas:

Jeera trading range for the day is 11773-12173.

Jeera dropped rising supplies from the new crop weighed on sentiments.

Production of Jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11

NCDEX accredited warehouses jeera stocks gained by 527 tonnes to 11289 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -51.45 rupees to end at 12428.55 rupees per 100 kg.