Jeera September contract dropped Rs 372.5 and settled at Rs 16065 per quintal as rains over some parts of Gujarat state, the country's top producer, weighed on sentiment. Gujarat has received light rains over the past 2-3 days, but overall the monsoon has been weak so far. Some areas in Gujarat and Saurashtra are expected to receive rains in the next 2-3 days, the weather office said in a statement. Export enquires were very thin as everyone was expecting a correction in prices. The total arrivals increased of jeera to 11,000 bags from 10,000 bags, while demand was seen for around 7,000 bags against 9,000 bags. Farmers in the domestic market have held back supplies on hopes of a further rise in prices while supplies from other origins have also been thin due to lower stocks. Jeera is a winter crop sown from October, and farmers depend on the rains to moisten the land for sowing. Expectations of improved overseas sales from India due to restricted supplies from Syria and Turkey and lower domestic arrivals are expected to keep jeera prices firm. In April, cumin exports rose 6 percent from a year ago to 2,500 tonnes. 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. In Unjha, a key spot market in Gujarat, jeera dropped -8.5 rupees to end at 16447.5 rupees per 100 kg. The contract made intraday low of Rs 15970 a kg and high of Rs 16747.5 a kg. Support for jeera is at 15774 below that could see a test of 15483. Resistance is now seen at 16552 above that could see a resistance of 17038.

Trading Ideas:

Jeera trading range for the day is 15484-17038.

Jeera dropped as rains over some parts of Gujarat state, the country's top producer, weighed on sentiment.

Export enquires were very thin as everyone was expecting a correction in prices.

NCDEX accredited warehouses jeera stocks gained by 21 tonnes to 9255 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -8.5 rupees to end at 16447.5 rupees per 100 kg.