Jeera August contract gained Rs 150 and settled at Rs 14517.5 per quintal due to a fall in the domestic spot supplies and some fresh export enquiries. Subdued rains in Gujarat state, the leading producer also supported the upside in the spice. There is good demand in the spot market from local buyers but supplies are weak and this is pushing prices up. Jeera is a winter crop, whose planting starts from October, and farmers depend on the monsoon to moisten the land for sowing. Carryover stocks of jeera in the domestic market is expected to be around 7-8 lakh bags as compared to 4-5 lakh bags in the last year. According to Spices Board of India, exports of Jeera during April 2011- March 2012 stood at 45,500 tonnes as compared to 32,500 tonnes in 2010-11, an increase of 40%. There are reports of lower output of jeera in Syria and Turkey in 2012. Fresh arrivals from Syria have commenced while harvesting of Jeera in Turkey will commence shortly. Jeera prices in the international market of Indian origin are being offered at $2,600/tonne (c&f) while Syria is offering its produce at $3,100/tonne (fob). The total arrivals of jeera decreased to 10,000 bags from 6,000 bags while demand improved to 13,000 bags against 9,000 bags on the previous day. In Unjha, a key spot market in Gujarat, jeera gained 203.85 rupees to end at 14346.75 rupees per 100 kg. The contract made intraday low of Rs 14382.5 a kg and high of Rs 14740 a kg. Support for jeera is at 14353 below that could see a test of 14189. Resistance is now seen at 14711 above that could see a resistance of 14904.

Trading Ideas:

Jeera trading range for the day is 14189-14905.

Jeera gained due to a fall in the domestic spot supplies and some fresh export enquiries

There is good demand in the spot market from local buyers but supplies are weak and this is pushing prices up

NCDEX accredited warehouses jeera stocks dropped by 81 tonnes to 9213 tonnes.

In Unjha, a key spot market in Gujarat, jeera gained 203.85 rupees to end at 14346.75 rupees per 100 kg.