Jeera February contract dropped Rs 361 and settled at Rs 14548 per quintal on short-covering after prices fell nearly 4 percent in as many sessions, but expectations of a rise in production in 2012 due to higher area under cultivation restricted gains.
Short-covering is supporting the upside in Jeera prices, but the overall trend is still weak because of favourable weather and higher acreage.
Jeera is cultivated during winter from October to December and harvesting starts from February. Higher arrival pressure amidst moderate demand kept pressure on the sentiments.
Cumin sowing rose 50 percent on year to 368,000 hectares in Gujarat as on Jan. 16.
According to Gujarat farm ministry, area sown under jeera till January, 18th 2012 stood at 3.682 lakh hectares (lh) up 50% as compared to last year while area covered in Rajasthan till date is expected to be 3.03 lakh hectares as compared to 3.30 lakh hectares in the same period last year.
In Unjha, a key spot market in Gujarat, Jeera gained 73.9 rupees to end at 14881.25 rupees per 100 kg.
The contract made intraday low of Rs 14151 a kg and high of Rs 14689 a kg.
Support for jeera is at 14236 below that could see a test of 13925.
Resistance is now seen at 14774 above that could see a resistance of 15001.
Trading Ideas:
Jeera trading range for the day is 13925-15001.
Jeera gained on short-covering but expectations of rise in production due to higher area under cultivation restricted gains
Jeera is cultivated during winter from October to December and harvesting starts from February
NCDEX accredited warehouses jeera stocks gained by 42 tonnes to 6199 tonnes.
In Unjha, a key spot market in Gujarat, jeera gained 73.9 rupees to end at 14881.25 rupees per 100 kg.
Courtesy: Kedia Commodities
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