Commodity Trading Tips for Jeera by KediaCommodity

JeeraJeera January contract dropped Rs 481 and settled at Rs 14735 per quintal on a decline in daily supplies while marginal export inquiries supported. In India, the world's largest producer and exporter of jeera, the crop is cultivated during winter -- from October to December -- and harvested in February-April. Reports of unfavorable weather conditions in Gujarat the major producing area of the spice led prices to strengthen. According to Gujarat farm ministry, area sown under jeera till December 13, 2011 stood at 2.32 lakh hectares (lh) up 26.68% as compared to last year. Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year. Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11.According to Spices Board of India, exports of Jeera during April 2011-Ocotber 2011 stood at 20500 tonnes as compared to 19,800 tonnes in 2010-11, an increase of 3.5%.Jeera arrivals in the Unjha mandi slightly up at 2,500 bags from 2,000 bags on Saturday while demands shoot up to 8,000 bags to 5,000 bags. In Unjha, a key spot market in Gujarat, jeera gained 129.6 rupees to end at 14387.5 rupees per 100 kg. The contract made intraday low of Rs 14315 a kg and high of Rs 14825 a kg. Support for jeera is at 14425 below that could see a test of 14115. Resistance is now seen at 14935 above that could see a resistance of 15135.

Trading Ideas:

Jeera trading range is 14115-15135.

Jeera ended up on a decline in daily supplies while marginal export inquiries supported

Reports of unfavorable weather conditions in Gujarat the major producing area led prices to strengthen

NCDEX accredited warehouses jeera stocks gained by 25 tonnes to 9073 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 129.6 rupees to end at 14387.5 rupees per 100 kg.