Short covering helped Jeera profit as prices fell and there were more opportunities for production

Prices for jeera saw a 0.68% recovery to close at 27295 due to short-covering after a decrease impacted by positive production outlooks in important regions like Gujarat and Rajasthan. The amount of land planted to jeera reached a four-year high during the current rabi season. Farmers increased their cultivation considerably in reaction to the record prices that were seen during the previous marketing season.

Export data from April to November 2023 showed a significant 33.10% decline at 84,467.16 tones compared to the same period in 2022. Gujarat saw an astounding 160% increase, covering 5.60 lakh hectares compared to the previous year’s 2.75 lakh hectares, surpassing the normal acreage of 3.5 lakh hectares. Rajasthan also saw a 25% surge, reaching 6.90 lakh hectares compared to the previous year’s 5.50 lakh hectares.

Short covering is present in the jeera market, as prices increased by 185 rupees despite a 1.94% decline in open interest that settled at 1971. Jeera’s current level of support is 26930; a break below it could result in a test of 26550. Resistance is anticipated at 27620 on the upside, and a break through may see prices test 27930.

The jeera market’s performance is determined by the delicate balance between strong local output and weakening worldwide demand. Market participants keep a close eye on variables like export trends, weather conditions, and acreage data for clues about future price changes.

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