Jeera fell after booking profits

Jeera’s price increased due to strong export demand and forecasts of lower stock levels at the end of the current marketing year. Yesterday, however, prices decreased by -1.92% to 47340 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. This year, the demand for cumin is expected to exceed 85 lakh bags, with a supply of about 65 lakh bags, according to FISS projections. One bag can contain 55kg. A supply-demand mismatch will result from this.

Approximately 30% of the crop in Gujarat and at least 70% of the crop in Rajasthan are still unharvested at this time. The overall yield will be lessened as a result of the rain in both states. Two periods of unseasonal rain during the harvest season completely ruined the cumin crop. With a carryover supply of 5 lakh bags from the previous year, the stock will be down from the anticipated arrival of 70 lakh bags to 60–65 lakh bags. Jeera prices decreased by -832.25 rupees to conclude at 47242.25 rupees per 100 kg in Unjha, a significant spot market in Gujarat.

Technically, the market is experiencing new selling because open interest increased by 5.27% to settle at 7968 while prices are down 925 rupees. Currently, Jeera is receiving support at 46760; a move below this level could result in a test of 46185 levels. Resistance is now expected to be seen at 47950; a move above this level could result in prices testing 48565.

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