Jeera fell on profit booking when prices increased due to agricultural concerns

After prices increased amid growing crop concerns due to unseasonal rains and hailstorms in Rajasthan, the main producing state, jeera yesterday settled down by -0.15% at 45490 as a result of profit taking. Demand from domestic and international purchasers has increased as a result of the market’s expectation of a lower yield and quality of jeera this season. 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.

In the case of the jeera crop, rainy or overcast weather has an effect on the quality of the seed, which frequently turns blackish to signify rotting. 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.

Technically, the market is in long liquidation because open interest dropped by 10.08 percent to 5190 while prices fell by 70 rupees. Currently, Jeera is receiving support at 44400, and a move below that level could result in a test of the 43315 levels. Meanwhile, resistance is now likely to be seen at 46175, and a move above could result in prices testing 46865.

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