A notable loss was experienced by jeera, or cumin, which dropped by -5.98% to close at 41475. The decrease is ascribed to excellent meteorological circumstances that facilitate sufficient soil moisture for agricultural sowing operations. As a result of stockists’ desire to purchase despite the recent price decline, the negative is lessened.
An encouraging aspect of the market dynamics is the impending normal sowing season in Gujarat, which is anticipated to witness a significant 116% increase in cumin sowing to 244,639.00 hectares. The demand for Indian jeera has plummeted internationally, notwithstanding the hopeful local sowing scenario. Due to the relatively higher pricing of Indian jeera, buyers are shifting to alternative sources like Syria and Turkey.
The export seasonality suggests that export activity will probably be muted in the upcoming months. Indian jeera’s competitive pricing on the international market hasn’t led to a rise in demand abroad, which has limited export activities. There is additional uncertainty in the market due to China’s possible acquisition in October or November. The month-by-month export data shows a noteworthy decline of 60.27% in September 2023 over the same month the previous year.
With a -0.21% decline in open interest that settled at 2916, the market appears to be in a lengthy liquidation from a technical perspective. The price decrease of -2640 rupees is in line with this. A further drop could test the 39500 levels, with 40490 serving as Jeera’s current point of support. Support is anticipated at 43450 on the upside, and a break through could take the price as high as 45420.
