India jeera at new high on demand, Syria crop talk

MUMBAI, June 19 (Reuters) - Indian jeera futures hit contract highs on Thursday on good export demand from Middle East and European countries and talk of low crop output in Syria and Turkey, analysts said.

The benchmark July jeera, which has risen more than 10 percent in the last six trading sessions, rose to its contract high of 12,200 rupees per 100 kg, before retreating.

"Rising export demand is pushing up the prices to new highs," said Chowda Reddy, an analyst with Karvy Comtrade Ltd.

Cumin seed or jeera exports from India, the largest producer and exporter, rose 8 percent to 28,000 tonnes in 2007/08, according to the Spices Board.

Demand in the physical market was about 14,000-15,000 bags, compared with 10,000-11,000 bags last week, said Arvindbhai Patel, a Unjha-based trader.

Talk of a lower crop output in Syria and Turkey also supported the market, said an analyst with Motilal Oswal Commodities Broker Pvt Ltd.

Syria and Turkey are two of the world's largest jeera producers and exporters.

However, prices are likely to ease in coming days on profit-booking and higher off-loading by farmers due to a recent rise in price, Reddy said.

The July contract would face resistance at 12,200 rupees and get support at 11,970 rupee, he said.