Prices of jeera increased because of large exports and a supply deficit

Due to strong export demand and predictions of lower stock levels at the end of the current marketing year, jeera yesterday decreased by -5.93% to 54640. Prices increased as crop worries grew as a result of Rajasthan, the state that produces the majority of the crops, experiencing unseasonal rains and hailstorms. This season, the market is anticipating lower yields and higher quality jeera, which has increased demand from both domestic and international purchasers. 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 big 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. 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.

Jeera prices in Unjha, a significant spot market in Gujarat, decreased marginally by -1380.45 rupees to close at 58124.1 per 100 kg. Technically, the market is in long liquidation as evidenced by the market’s drop in open interest of 6.86% to close while prices are down by 3445 rupees. Currently, Jeera is receiving support at 53630 and a move below could result in a test of the 52615 levels, while a move above could result in a test of the 58615 levels.

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