Jeera May contract dropped Rs 42.5 and settled at Rs 12235 per quintal as supplies were higher than expected due to an increase in output, though export demand is seen supporting prices in the short term. Export demand is improving at these prices especially from Bangladesh. Local demand is also expected to remain firm in short term due to wedding season. Daily spot supplies declined to 17,000 bags of 60 kg on Wednesday at Unjha, a key spot market in top producing western Gujarat state. Traders, however, said supplies have come down to 17,000-20,000 bags in last one week but are still higher than 8,000-10,000 bags a year ago. India is the world's top producer and exporter of jeera, which is cultivated from October to December and harvested from February. Daily spot supplies are 17,000-20,000 bags of 60 kg at Unjha, the main market in Gujarat, down from more than 30,000 bags three weeks ago but well above 8,000-10,000 bags at this time last year. Production of jeera, cultivated from October to December and harvested from February, is estimated at 3.6 million bags of 60 kg each, up 38 percent on year. The total arrivals of jeera increased to 20,000 bags from 15,000 bags, while demand was seen for around 19,000 bags. In Unjha, a key spot market in Gujarat, jeera dropped -14.7 rupees to end at 12738.25 rupees per 100 kg. The contract made intraday low of Rs 12200 a kg and high of Rs 12300 a kg. Support for jeera is at 12190 below that could see a test of 12145. Resistance is now seen at 12290 above that could see a resistance of 12345.

Trading Ideas:

Jeera trading range for the day is 12147-12347.

Jeera dropped as supplies were higher than expected due to an increase in output

Jeera production is estimated at 3.6 million bags of 60 kg each, up 38 percent on year.

NCDEX accredited warehouses jeera stocks dropped by 141 tonnes to 11242 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -14.7 rupees to end at 12738.25 rupees per 100 kg.