Jeera February contract gained Rs 133 and settled at Rs 14670 per quintal on short covering though gains were limited on expectations of increased production in 2012 due to higher area under cultivation and as fresh supplies are seen weighing on prices.
Earlier there were concerns that adverse weather condition in Gujarat could hurt Jeera cultivation but nothing such happened and arrivals are rising in spot markets.
Small supplies from the new crop have started at few places and is likely to rise next week, said a trader from Unjha, a key market in Gujarat.
Expectation of better output on account of favourable weather conditions prevailing in Gujarat and Rajasthan are restricting prices from trading higher.
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.
Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year.
The total arrivals stood of Jeera were steady at 3,000 bags. While demand was seen for around 8,000 bags.
In Unjha, a key spot market in Gujarat, jeera gained 5.55 rupees to end at 14930.55 rupees per 100 kg.
The contract made intraday low of Rs 14540 a kg and high of Rs 14788 a kg.
Support for jeera is at 14544 below that could see a test of 14418. Resistance is now seen at 14792 above that could see a resistance of 14914.
Trading Ideas:
Jeera trading range for the day is 14425-14921.
Jeera gained on short covering though gains were limited on expectations of increased production in 2012
Expectation of better output on account of favourable weather conditions prevailing in Gujarat and Rajasthan are restricting prices
NCDEX accredited warehouses jeera stocks gained by 47 tonnes to 6219 tonnes.
In Unjha, a key spot market in Gujarat, jeera gained 5.55 rupees to end at 14930.55 rupees per 100 kg.
Courtesy: Kedia Commodities
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