Jeera February contract dropped Rs 115 and settled at Rs 15844 per quintal as an increase in area under cultivation and conducive weather conditions raised expectations of higher production, with the approaching arrival season also weighing on prices. Jeera is cultivated during winter from October to December and harvesting starts from February. Weather is favourable for the crop. Harvesting will start from February and supplies are expected to increase after that. Traders expect higher production in 2012 because of increased area under cultivation in Gujarat. Cumin sowing rose 50 percent on year to 368,000 hectares in Gujarat as on Jan. 16. The total arrivals of jeera stood at 8,000 bags (4,500 bags as on 24th January 2012) while demand was seen for around 8,200 bags. Lower arrivals coupled with better offtakes by the local stockists are keep Jeera prices firm in the intraday. Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. (Each bag weighs 55 kgs). In Unjha, a key spot market in Gujarat, jeera dropped -94.7 rupees to end at 15963.65 rupees per 100 kg. The contract made intraday low of Rs 15680 a kg and high of Rs 15990 a kg. Support for jeera is at 15686 below that could see a test of 15528. Resistance is now seen at 15996 above that could see a resistance of 16148.

Trading Ideas:

Jeera trading range is 15528-16148.

Jeera dropped due to an increase in area under cultivation and conducive weather conditions

Traders expect higher production in 2012 because of increased area under cultivation in Gujarat

NCDEX accredited warehouses jeera stocks dropped by 132 tonnes to 7729 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -94.7 rupees to end at 15963.65 rupees per 100 kg.