Jeera June contract dropped Rs 47.5 and settled at Rs 13077.5 per quintal due to estimates of higher output though export demand and a drop in local supplies limited the downside. Export demand is expected to improve in the coming weeks because of a lack of supplies from Syria and Turkey. Exports are yet to pick up strongly though traders are expecting that to happen in coming weeks. Traders are expecting that the total production of Jeera in the current year is expected to be around 34 -35 lakh bags, up 1 lakh bags from the last year. This is mainly due to better crop productivity in some areas of Gujarat and quality is poor in Rajasthan. The counter may witness some bargain buying on some export orders in long term as supply constraints exits in Syria, Turkey.  Good sowing reports from Gujarat and Rajasthan keeps the production prospects good. Indian production is expected at 28-30 lakh bags translating to more than 1.5 lakh tons this year. As per market sources, the spot mandies of jeera have reported the record arrivals of around 2.50 lakh bags in the last week. This was mainly due to ample carryover stocks of around 8-10 lakh bags of old jeera in local mandies along with anticipation of strong jeera production in the current year. In Unjha, a key spot market in Gujarat, jeera dropped -137.5 rupees to end at 13425 rupees per 100 kg. The contract made intraday low of Rs 12957.5 a kg and high of Rs 13100 a kg. Support for jeera is at 12990 below that could see a test of 12903. Resistance is now seen at 13133 above that could see a resistance of 13188.

Trading Ideas:

Jeera trading range for the day is 12902-13188.

Jeera ended lower due to estimates of higher output though export demand and a drop in local supplies limited the downside.

Export demand is expected to improve in the coming weeks because of a lack of supplies from Syria and Turkey.

NCDEX accredited warehouses jeera stocks gained by 143 tonnes to 7408 tonnes.

In Unjha, a key spot market in Gujarat, jeera dropped -137.5 rupees to end at 13425 rupees per 100 kg.