Jeera April contract gained Rs 272.5 and settled at Rs 12170 per quintal on short covering though upside was limited due to mounting supplies in the spot market amid expectations of higher production. However, with export demand too likely to pick up in coming weeks, there are expectations that further fall may be limited. Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year. As per Rajasthan Agricultural Ministry, the sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions as per reports. Exporters are reportedly waiting for the new crop for creating fresh demand in the mandis. The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions in growing areas that could affect the productivity to some extents per traders. Lower production in Turkey and Syria could support Indian rates. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes. In Unjha, a key spot market in Gujarat, jeera dropped -95 rupees to end at 12480 rupees per 100 kg. The contract made intraday low of Rs 11822.5 a kg and high of Rs 12270 a kg. Support for jeera is at 11905 below that could see a test of 11640. Resistance is now seen at 12353 above that could see a resistance of 12535.

Trading Ideas:

Jeera trading range for the day is 11640-12536.

Jeera gained on short covering though upside was limited due to mounting supplies amid expectations of higher production

Exporters are reportedly waiting for the new crop for creating fresh demand in the mandis

NCDEX accredited warehouses jeera stocks gained by 1169 tonnes to 8503 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -95 rupees to end at 12480 rupees per 100 kg.