Due to strong export demand and anticipation of lower stock levels at the end of the current marketing year, jeera yesterday finished up 0.7% at 49885. Prices increased as crop worries grew as a result of Rajasthan, the state that produces the majority of the crops, experiencing unseasonal rains and hailstorms. This season, the market is anticipating lower yields and higher quality jeera, which has increased demand from both domestic and international purchasers.
Concerns about the crop status have been raised by recent unseasonal rains that have fallen in the jeera-growing regions of southern and northern Rajasthan in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer. In preparation for the increase in the seasonal supply of jeera in Gujarat and Rajasthan, marginal traders are refraining from mass purchases. Market supplies that were below average helped keep prices firm. On June 6, approximately 508 tonnes of jeera landed at significant APMC mandis throughout India as opposed to 653 tonnes the day before. Lower output and tighter carryover stockpiles will result in further price increases.
Cumin demand is expected to exceed 85 lakh bags this year, with a likely supply of 65 lakh bags, according to FISS projections. 55 kilograms can fit in one bag. An imbalance in supply and demand will result from this. At least 70% of the crop in Rajasthan and about 30% of the crop in Gujarat are still unharvested at this time. The total yield will be lower due to the rain in both states. During the harvest season, two periods of unseasonal rainfall ruined the cumin crop.
The stock will be downsized from the anticipated arrival of 70 lakh bags to 60–65 lakh bags, with a carryover stock of 5 lakh bags from the previous year. Jeera edged up by 349.9 rupees in Unjha, a significant spot market in Gujarat, to finish at 49237.65 rupees per 100 kg. Technically, the market is experiencing new buying as open interest increased by 5.1% to settle at a higher level while prices increased by 345 rupees. Currently, Jeera is receiving support at 49270, and a move below that level could result in a test of the 48660 levels. Meanwhile, resistance is now likely to be seen at 50370, and a move above could result in prices testing 50860.
