Jeera April contract dropped Rs -80 and settled at Rs 11990 per quintal  as new season crop arrivals weighed on sentiments. Meanwhile, the prices are likely to gain in the near term due to probable rise in the demand by exporters and stockiest at prevailing lower rates. Expectation of high output is putting pressure on the prices. Daily supplies in Unjha market have risen to 38,000-40,000 bags of 60 kg each compared with 28,000-30,000 bags a week ago. Export demand is good for Indian-origin jeera. Most of the demand is coming from Dubai and the U.S. But higher supplies are keeping prices under pressure. Jeera is cultivated during winter, from October to December, and harvested from February. Fresh supplies from Syria and Turkey are expected to be delayed due to unfavorable weather and the ongoing civil unrest for the past few months. Also, there are reports that political calamity has prevented farmers from accessing their farms. Average daily arrivals in the domestic currently have surged to average daily arrival of 25571 bags during 1st-17th March 2012 from 6304 bags average daily in the month of February 2012. Exports of Jeera during April to December 2011 rose by 44.8% to 31,500 tonnes as compared to 21,750 tonnes in the same period previous year. Exports for the month of December 2011 however witnessed a decline of 30% month and month to 5,000 tonnes. In Unjha, a key spot market in Gujarat, jeera dropped -12.75 rupees to end at 12748.5 rupees per 100 kg. The contract made intraday low of Rs 11850 a kg and high of Rs 12220 a kg. Support for jeera is at 11820 below that could see a test of 11650. Resistance is now seen at 12190 above that could see a resistance of 12390.

Trading Ideas:

Jeera trading range for the day is 11650-12390.

Jeera ended lower as new season crop arrivals weighed on sentiments

Daily supplies have risen to 38,000-40,000 bags of 60 kg each compared with 28,000-30,000 bags a week ago

NCDEX accredited warehouses jeera stocks dropped by 27 tonnes to 6859 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -12.75 rupees to end at 12748.5 rupees per 100 kg.