Jeera March contract gained Rs 126 and settled at Rs 13930 per quintal on short covering by the traders on the back of rising spot demand though higher output concerns limited the uptrend.
Around 1,500-2,000 bags of 60 kg each from the new crop are arriving daily at the Unjha market in Gujarat.
Jeera is cultivated during winter from October to December and harvesting starts from February. Jeera sowing rose 50 percent on year to 368,000 hectares in Gujarat as on Jan. 16. Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year.
As per Rajasthan Agricultural Minis-try, the sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions as per reports.
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.
Latest report from Spice Board of India indicates estimated Spices exports for April-Nov 2011 have fallen by 5% from 372010 MT in 2010 to 351900 MT in 2011.
Jeera exports rose by 28% from 20750 MT to 26500 MT in same period. In Unjha, a key spot market in Gujarat, Jeera dropped -16.7 rupees to end at 14466.65 rupees per 100 kg.
Trading Ideas:
Jeera trading range for the day is 13615-14179.
Jeera prices gained on short covering on the back of rising spot demand
Around 1,500-2,000 bags of 60 kg each from the new crop are arriving daily at the Unjha market in Gujarat
NCDEX accredited warehouses jeera stocks dropped by 90 tonnes to 6128 tonnes.
In Unjha, a key spot market in Gujarat, jeera dropped -16.7 rupees to end at 14466.65 rupees per 100 kg.
Courtesy: Kedia Commodities
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