Jeera August contract dropped Rs 247.5 and settled at Rs 15217.5 per quintal as export demand got affected at the higher levels.  Moderate rains in Gujarat created a slight bearish impact on the markets as some moisture would be needed for the sowing to start in October. Traders expect high volatility to continue in the near term but medium to long term trend looks Bullish as exports are expected to pick up in coming months amidst lower production reports in Turkey and Syria and a strong Dollar. 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. Latest report from Spice Board of India indicates Spices exports for April 2011-Jan 2012 have risen by 1% from 432115 MT in 2010-11 to 436175 MT in 2011-12. Jeera exports rose by 54% from 22450 MT to 34500 MT in same period. India's monsoon rains were 49 percent below average in the week ended July 4, widening the gap of an 18 percent shortfall in the previous week, data from the weather office showed on July 5. Around 15,000 bags of 60 kg each reached the Unjha market on Monday as compared with 8,000-9,000 bags last week. The total arrivals decreased to 12,000 bags from 14,000 bags, while demand was seen for around 12,000 bags against 23,600 bags on Tuesday. In Unjha, a key spot market in Gujarat, jeera dropped -155.85 rupees to end at 14880 rupees per 100 kg. The contract made intraday low of Rs 15060 a kg and high of Rs 15445 a kg. Support for jeera is at 15037 below that could see a test of 14856. Resistance is now seen at 15422 above that could see a resistance of 15626.

Trading Ideas:

Jeera trading range for the day is 14856-15626.

Jeera ended with weakness as export demand got affected at the higher levels.

Moderate rains in Gujarat created a slight bearish impact on the markets

NCDEX accredited warehouses jeera stocks gained by 32 tonnes to 9206 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -155.85 rupees to end at 14880 rupees per 100 kg.