Jeera May contract dropped Rs -137.5 and settled at Rs 12080 per quintal on higher arrivals in the spot market and on lacklustre demand amid projections of a rise in output. Lower arrivals and some export queries in the mandis supported the falling rates for Jeera as stockists are reportedly not willing to sell stocks at these lower levels. Rates have fallen considerably over last few months and Jeera rates may find support at these levels further if exports pick up. However 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. 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 extent as per traders. In Unjha, a key spot market in Gujarat, jeera dropped 0 rupees to end at 12494.3 rupees per 100 kg. The contract made intraday low of Rs 12045 a kg and high of Rs 12290 a kg. Support for jeera is at 11987 below that could see a test of 11893. Resistance is now seen at 12232 above that could see a resistance of 12383.

Trading Ideas:

Jeera trading range for the day is 11893-12383.

Jeera dropped on higher arrivals in the spot market and on lacklustre demand

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

NCDEX accredited warehouses jeera stocks gained by 140 tonnes to 12070 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 28.6 rupees to end at 12494.3 rupees per 100 kg.