Jeera May contract gained Rs 205 and settled at Rs 12175 per quintal up on continued short-covering after falling in the last week and on a decline in arrivals. Due to a sharp fall in prices, farmers started holding back and reduced supplies to the spot market. Fall in arrivals in Unjha supported the falling rates to some extent as demand is yet to pick up significantly. With rates having fallen a lot over last few weeks, traders expect a likely rise in demand in coming weeks to support the prices. Short term trend is depending on arrival and demand figures. Reports of moderate export queries are there. However higher arrivals and reports of an expected higher production could prevent rates from rising a lot in short term. 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. In Unjha, a key spot market in Gujarat, jeera dropped -34.65 rupees to end at 12494.3 rupees per 100 kg. The contract made intraday low of Rs 11880 a kg and high of Rs 12320 a kg. Support for jeera is at 11930 below that could see a test of 11685. Resistance is now seen at 12370 above that could see a resistance of 12565.

Trading Ideas:

Jeera trading range for the day is 11685-12565.

Jeera ended up on continued short-covering after falling in the last week and on a decline in arrivals

Due to a sharp fall in prices, farmers started holding back and reduced supplies to the spot market.

NCDEX accredited warehouses jeera stocks dropped by 33 tonnes to 11930 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -34.65 rupees to end at 12494.3 rupees per 100 kg.