Jeera April contract dropped Rs 232.5 and settled at Rs 11962.5 per quintal as expectations of higher production weighed on sentiments. Supplies were only 20,000 bags at Unjha market on Friday against more than 30,000 bags this week. Traders, however, expect spot supplies to pick up next week due to the ongoing peak arrival season. 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). According to Spices Board of India, exports of Jeera during April 2011- January 2012 stood at 34,500 tonnes as compared to 22,450 tonnes in 2010-11, an increase of 54%. However, month on month exports of jeera witnessed a decline of 40%.As per the latest release from the Spices Board of India, 34,500 tonnes of Cumin worth Rs 49,477.05 lakh as against 22,450 tonnes valued at Rs 27,068.04 lakh with an increase of 54% in quantity and 83% in value have been exported during the current financial year. 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. 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. The Jeera arrivals at the benchmark Unjha mandi slumped to 30,000 bags from 32,000 bags with strong demand which stood at 30,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -136.1 rupees to end at 12642.85 rupees per 100 kg. The contract made intraday low of Rs 11960 a kg and high of Rs 12232.5 a kg. Support for jeera is at 11871 below that could see a test of 11779. Resistance is now seen at 12143 above that could see a resistance of 12324.

Trading Ideas:

Jeera trading range for the day is 11786-12330.

Jeera ended weak as expectations of higher production weighed on sentiments

Production of Jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11.

NCDEX accredited warehouses jeera stocks dropped by 9 tonnes to 6928 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -136.1 rupees to end at 12642.85 rupees per 100 kg.