The price of Jeera yesterday decreased by -0.29% to 44400 as a result of profit taking due to the seasonal rise in supply. Market morale is also being kept down by the rising imports of jeera at a lower price. Due to the expected increase in the seasonal supply of jeera in Gujarat and Rajasthan, margin dealers are avoiding making large purchases. 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. 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 as evidenced by the -5.33% drop in open interest to settle at 6285 while prices are down -130 rupees. Currently, Jeera is receiving support at 44050 and a move below could result in a test of the 43695 levels. Meanwhile, resistance is now more likely to be seen at 44860, and a move above could result in prices testing 45315.
