Jeera on NCDEX settled down -2.19% at 17900 on expectation of increase in Jeera area in Gujarat state mainly in Saurashtra and Kutch zone current year. Sowing has been good so far and weather conditions are also favorable for jeera crop. As all is going well as exporters are not buying in large quantities but are waiting for the new crop. However, looking at the current trend, buyers may not take a risk and initially demand will be low at the beginning of the new season. According to jeera exporters, while the new season is likely to start in March, farmers have gradually begun accepting payment digitally, and have therefore been able to ensure steady supply. Jeera exporters may not face the problems that cotton, groundnut or other commodities exporters are facing due to the cash crunch post demonetisation. The new season for jeera will start in March, by which time exporters may be able to source the required stocks. As per industry data, India exported about 100,000 tonnes of the spice during April to December and more than 20,000 tonnes of additional export would be possible during theo next two months. As against this, India's total jeera exports were 98,000 tonnes in 2015-16. At Gondal(Guj.) market in Rajkot(Guj.), total arrivals are at 1500 quintals, higher by 730 quintals from previous day’s arrivals. At Unjha market in Mehsana, sources reported arrivals at 1900 quintals, higher by 900 quintals from previous day’s arrivals. Technically market is under long liquidation as market has witnessed drop in open interest by -6.44% to settled at 5232 while prices down -400 rupees, now Jeera is getting support at 17542 and below same could see a test of 17183 level, And resistance is now likely to be seen at 18357, a move above could see prices testing 18813.

Trading Ideas:

Jeera trading range for the day is 17185-18815.

Jeera prices dropped on expectation of increase in Jeera area in Gujarat state mainly in Saurashtra and Kutch zone current year.

Sowing has been good so far and weather conditions are also favorable for jeera crop.

As all is going well as exporters are not buying in large quantities but are waiting for the new crop.

In Unjha, a key spot market in Gujarat, jeera edged up by 12.8 Rupees to end at 18666.65 Rupees per 100 kg.