Prices of jeera increased because of strong export demand

Due to strong export demand and predictions of fewer supplies at the end of the current marketing year, jeera yesterday finished up 2.12% at 45660. Prices increased as concerns about the crops grew as a result of hailstorms and unseasonal rains in Rajasthan, the main producing state. This season, the market is anticipating decreased yield and quality of jeera, which has increased demand from both domestic and international buyers.

In the past week, the jeera-growing regions in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer in the southern and northwestern sections of Rajasthan have experienced a fresh round of unseasonal rainfall, raising concerns about the crop status. 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, fell by -98.95 rupees to close at 46657.25 rupees per 100 kg.

Technically, the market is under short covering as open interest decreased by -2.06% to settle at 9135 while prices increased by 950 rupees. Currently, Jeera is receiving support at 44800, and a move below that level could result in a test of the 43945 levels. Resistance is now anticipated to be seen at 46195, and a move above could result in a test of the 46735 levels.

Leave a Reply

Your email address will not be published. Required fields are marked *