Jeera decreased on profit booking following a gain in strong export demand

Jeera’s price increased due to strong export demand and forecasts of fewer stockpiles at the end of the current marketing year. Yesterday, however, prices decreased by -1.24% to 49265 as profit was booked. Prices increased as concerns about the crops grew as a result of hailstorms and unseasonal rains in Rajasthan, the main producing state. This season, the market is anticipating decreased yield and quality of jeera, which has increased demand from both domestic and international buyers. The jeera-growing areas in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer in southern and northern portions of Rajasthan have recently experienced a fresh round of unseasonal rainfall, raising fears about the crop’s health.

Due to the expected increase in the seasonal supply of jeera in Gujarat and Rajasthan, margin dealers are avoiding making large purchases. The market’s lower-than-average supplies helped keep prices firm. In comparison to the 653 tonnes that arrived the day before, about 508 tonnes of jeera landed at significant APMC mandis across India on June 6. Higher pricing will result from tighter carryover stocks and less output.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 68.5 rupees in Unjha, a significant spot market in Gujarat, to close at 4930.15 rupees per 100 kg. Technically, the market is experiencing new selling as open interest increased by 0.66% to settle at a level where prices are down 620 rupees. Currently, Jeera is receiving support at 48840, and a move below that level could result in a test of 48410 levels. Resistance is now anticipated to be seen at 49920, and a move above could result in prices testing 50570.

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