Jeera October contract gained Rs 72 and settled at Rs 15687 per quintal recovering from lows on short covering though sentiments remained weak as low trading activities continued to persist in the mandis. There are apprehensions of further fall in rates in the short term before exports rise. Reports of adverse weather conditions in other major producers like Turkey and Syria have created apprehensions of lower output there and a possibility of delayed arrivals, originally scheduled from end-June onwards. Syrian production expected at 40000 tonnes and that in Turkey lower at 12-15000 tonnes. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes. Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-June 2011 have fallen by 26% from 157,850 MT in 2010 to 116,900 MT in 2011. Jeera exports fell by 46% from 10,600 MT to 5,750 MT during the same period. Nearly 6,000 bags of Jeera arrivals reported while the demand was reported for 5,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -39.05 rupees to end at 15558.85 rupees per 100 kg. The contract made intraday low of Rs 15480 a kg and high of Rs 15707 a kg. Support for jeera is at 15542 below that could see a test of 15398. Resistance is now seen at 15769 above that could see a resistance of 15852.

Trading Ideas:

Jeera trading range is 15398-15852.

Jeera priced recovered from lows on short covering though sentiments remained weak on low trading activities

Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes.

NCDEX accredited warehouses jeera stocks gained by 67 tonnes to 10668 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -39.05 rupees to end at 15558.85 rupees per 100 kg.