Jeera October contract dropped Rs 50 and settled at Rs 13925 a kg on hopes rains in top producing Gujarat state will help farmers to increase acreage under the spice, though thin stocks limited the downside.

Weather department on Wednesday forecast rains over Gujarat in the next four days, which will enhance soil moisture level and accelerate the sowing.

In Unjha, a key spot market in Gujarat, jeera dropped -57.15 rupees to end at 14000 rupees per 100 kg. The contract made intraday low of Rs 13841 a kg and high of Rs 14008 a kg. Support for jeera is at 13841 below that could see a test of 13758.

Resistance is now seen at 14008 above that could see a resistance of 14092.

Trading Ideas:

Jeera trading range is 13758-14092.
Jeera ended weak as hopes rains will help increase acreage
Support for the jeera is at 13840 and resistance is at 14010.
NCDEX accredited warehouses jeera stocks rose 56 tonnes to 5360 tonnes.
In Unjha, a key spot market in Gujarat, jeera dropped -57.15 rupees to end at 14000 rupees per 100 kg.

Courtesy: Kedia Commodities

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