Jeera April contract gained Rs 167.5 and settled at Rs 11967.5 per quintal on short covering after prices dropped last week on higher arrivals in the local market from a good harvest and a lacklustre demand from domestic and foreign buyers. Jeera prices are expected to fall further as crop this year is higher, and traders are waiting for further decline in the prices before placing new orders. Daily arrivals in Unjha, a key spot market in top producing Gujarat state, rose to 40,000 bags of 60 kg each from less than 28,000 bags last week. India is the world's top producer and exporter of jeera, which is cultivated from October to December and harvested from February. Jeera production is estimated at 3.6 million bags of 60 kg each, up 38 percent on year. 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. The total arrivals of jeera stood steady at 30,000 bags, while demand was seen for around 31,000. In Unjha, a key spot market in Gujarat, jeera gained 75.2 rupees to end at 12528.95 rupees per 100 kg. The contract made intraday low of Rs
11802.5 a kg and high of Rs 12037.5 a kg. Support for jeera is at 11834 below that could see a test of 11701. Resistance is now seen at 12069 above that could see a resistance of 12171.

Trading Ideas:

Jeera trading range for the day is 11701-12171.

Jeera ended higher on short covering after prices dropped last week on higher arrivals in the local market

Jeera production is estimated at 3.6 million bags of 60 kg each, up 38 percent on year.

NCDEX accredited warehouses jeera stocks gained by 126 tonnes to 11963 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 75.2 rupees to end at 12528.95 rupees per 100 kg.