Jeera prices increased as a result of strong export demand

The strong export demand and anticipated lower stock levels at the end of the current marketing year helped Jeera close up 3.04% at 48580 yesterday. 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. On June 6, about 508 tonnes of jeera landed at important APMC mandis across India, down from 653 tonnes the day before. More price increases will result from lower production and tighter carryover stocks. 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. One bag can contain 55 kg.

A demand-supply 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 prices decreased somewhat by -467.15 rupees in Unjha, a significant spot market in Gujarat, to close at 47856.15 rupees per 100 kg. Technically, the market is experiencing new buying as open interest increased by 10.12% to settle at a higher level while prices increased by 1435 rupees. Currently, Jeera is receiving support at 47110, and a decline below that level could result in a test of the 45640 levels. Resistance is now anticipated to be seen at 49540, and a move above could result in a test of 50500 levels.

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