Jeera gains as a result of strong export demand and decreased stock estimates

Jeera yesterday increased by 1.26% to settle at 47980 as a result of strong export demand and projections for fewer supplies at the end of the current marketing year. Due to Rajasthan’s unseasonal rains and hailstorms, the state that produces the majority of the crops, prices increased as crop worries grew. Due to increased demand from both domestic and international clients, the market is anticipating a decreased yield and quality of jeera this season. Concerns over the crop status have been raised by recent unseasonal rains that have fallen in Rajasthan’s jeera-growing regions in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer.

As the seasonal supply of jeera in Gujarat and Rajasthan increases, margin dealers are avoiding making large purchases. Prices were kept firm by the market’s below-average supplies. 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. 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.

At the moment, Gujarat’s crop has been harvested to about 30% of its potential, and Rajasthan’s crop to at least 70%. There will be a decrease in the overall yield as a result of the rain in both states. Two periods of atypical rainfall during the harvest season ruined the cumin crop. Rather than the anticipated delivery of 70 lakh bags, the stock will be cut to 60–65 lakh bags, with a carryover stock of 5 lakh bags from the previous year.

Jeera’s price inched up by 369.4 rupees to finish at 47386.7 rupees per 100 kg in Unjha, a significant spot market in Gujarat. Technically, the market is experiencing new buying because open interest increased by 9.25% to settle at a higher level while prices increased by 595 rupees. Currently, Jeera is receiving support at 47090, and a move below that level could result in a test of the 46200 levels. Resistance is now anticipated to be seen at 48605, and a move above could result in a test of 49230.

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