Jeera February contract gained Rs 231 and settled at Rs 16040 per quintal on the back of thin supply in the spot markets. Weather is good for the crop and we are expecting higher production this year. Supplies from the new crop would start by February. Traders are expecting higher production for 2012 because of increased area under cultivation in Gujarat state, the top producer. Cumin was sowed in Gujarat on 368,000 hectares as on Jan. 16, up 50 percent from the year ago. Jeera is cultivated in winter from October to December and harvested in February-April. According to Gujarat farm ministry, area sown under Jeera till December 19, 2011 stood at 2.64 lakh hectares (lh) up 26% 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. The total arrivals of jeera stood at 3,000 (3,000-3,500 bags as on 19 January 2012) while demand was seen for around 6,000 bags against demand reported for 3,600 bags on the last day. In Unjha, a key spot market in Gujarat, jeera gained 108.75 rupees to end at 15912.5 rupees per 100 kg. The contract made intraday low of Rs 15743 a kg and high of Rs 16170 a kg. Support for jeera is at 15799 below that could see a test of 15557. Resistance is now seen at 16226 above that could see a resistance of 16411.

Trading Ideas:

Jeera trading range is 15557-16411.

Jeera rose on the back of thin supply in the spot markets.

Jeera was sowed in Gujarat on 368,000 hectares as on Jan. 16, up 50 percent from the year ago

NCDEX accredited warehouses jeera stocks dropped by 112 tonnes to 8167 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 108.75 rupees to end at 15912.5 rupees per 100 kg.