Jeera lost on profit booking from higher levels

Jeera yesterday decreased by -1.38% to 62245 as a result of profit-taking after prices increased owing to a restricted supply brought on by the wet weather. However, the domestic and foreign demand for cumin is now weak. Gujarat, Rajasthan, and other regions have seen disruptions in the cumin industry as a result of excessive rains having an impact on cumin quality. The price of cumin has temporarily corrected due to imports and exports from China, with a recent $200 drop in the international market.

The market dynamics are made even more unpredictable by the potential for China to purchase Indian cumin in October or November prior to the introduction of fresh cumin. When compared to the import amount of 64 metric tonnes in the month prior, cumin imports in May 2023 increased significantly by 227.73% to 210 metric tonnes. The demand for cumin is expected to exceed 85 lakh bags this year, while the supply is only expected to be 65 lakh bags, according to FISS projections.

In comparison to the 25,603.35 tonnes exported in the April–May 2022 period, jeera exports increased by 67.90% to 42,988.50 tonnes in the April–May 2023 period. The amount of jeera shipped in May 2023 was approximately 25,903.63 tonnes as compared to 17,084.87 tonnes in April 2023, a 51.52% increase. There was a 73.91% increase in jeera exports from 14,894.62 tonnes in May 2022 to about 25,903.63 tonnes in May 2023.

Jeera’s price decreased by -643.4 rupees to finish at 61400.9 rupees per 100 kg in Unjha, a significant spot market in Gujarat. Technically, the market is experiencing fresh selling because open interest increased by 8.34% to close at 5106 while prices decreased by -870 rupees. Currently, Jeera is receiving support at 61855, and a move below that level could result in a test of the 61465 levels. On the other hand, resistance is now likely to be seen at 62910, and a move above could result in prices testing 63575.

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