Jeera yesterday settled up 0.38% at 12630 due to pick-up in demand from local parties as well as overseas enquiries though expectations of a higher area under cultivation, higher-than-expected spot supplies and subdued local demand limited the upside. Existing stocks in the mandis capped the upside in the commodity price. Daily supplies at Unjha were at 7,000-8,000 bags of 60 kg each, higher than the expected 3,000-4,000 bags. Farmers have started sowing jeera in some areas and it would gain pace from the next week. Jeera, or cumin seed, is a winter crop sown from October and farmers mainly depend on the rains to moisten the land for sowing. The spot market traders suggested that strong export demand of jeera in the current year accompanied with favourable weather conditions will encourage strong jeera crop sowing in the current year. The total sowing acreage is likely to increase by 10-12% in the current year as strong sowing is likely in the areas of Gujarat and Rajasthan. Growers will soon begin planting jeera, a Rabi crop, and this year the spice crop's acreage is likely to be higher due to favourable weather conditions and soil moisture. The domestic export prices of jeera were hovering around $ 2180-2200 per tonne (FOB) against $2600-$2650 per tonne reported in Syria and Turkey. This will shift the international buyers towards Indian market in the coming export season of October- December. In Unjha, a key spot market in Gujarat, jeera edged down by -18.4 rupees to end at 13119 rupee per 100 kg. Technically market is under short covering as market has witnessed drop in open interest by -1.35% to settled at 10110 while prices up 47.5 rupee, now Jeera is getting support at 12573 and below same could see a test of 12517 level, And resistance is now likely to be seen at 12688, a move above could see prices testing 12747.

Trading Ideas:

Jeera trading range for the day is 12518-12748.

Jeera rose due to pick-up in demand from local parties as well as overseas enquiries.

The total sowing acreage is likely to increase by 10-12% in the current year as strong sowing is likely in the areas of Gujarat and Rajasthan

Daily supplies at Unjha were at 7,000-8,000 bags of 60 kg each, higher than the expected 3,000-4,000 bags.

In Unjha, a key spot market in Gujarat, jeera edged down by -18.4 rupees to end at 13119.1 rupee per 100 kg.