Jeera October contract dropped Rs 76 and settled at Rs 15855 per quintal as weak trend persisted due to lack of significant demand amidst low arrivals. Traders are not ruling out some more corrections in the near term till demand picks up. Medium term trend looks firm from expected rise in export demand but short term trend is expected to remain volatile. Firmness in Dollar vs Re too could support the export factor. 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. In Unjha, a key spot market in Gujarat, jeera dropped -21.05 rupees to end at 15400 rupees per 100 kg. The contract made intraday low of Rs 15724 a kg and high of Rs 15950 a kg. Support for jeera is at 15736 below that could see a test of 15617. Resistance is now seen at 15962 above that could see a resistance of 16069.

Trading Ideas:

Jeera trading range is 15617-16069.

Jeera ended weak as weak trend persisted due to lack of significant demand amidst low arrivals

Traders are not ruling out some more corrections in the near term till demand picks up.

NCDEX accredited warehouses jeera stocks gained by 226 tonnes to 11237 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -21.05 rupees to end at 15400 rupees per 100 kg.