Short covering worked to Jeera’s advantage

The prices of jeera had a notable upward trend, culminating in a 5.04% gain at 39985, mostly due to short covering subsequent to previous increases ascribed to increased production prospects in Gujarat and Rajasthan. But the market is facing difficulties because of Gujarat’s aggressive sowing and slow exports, which are expected to drive down prices in the near future.

Gujarat’s Jeera planting efforts have increased dramatically, rising by over 94% to 433,754.00 hectares from 224,140.00 hectares during the same period in 2022. In a similar vein, cumin cultivation has increased by 13% in Rajasthan, where 6.32 lakh hectares have been sown. The market’s pessimistic outlook is exacerbated by this production spike.

Because Indian jeera is relatively more expensive than other sources, such as Syria and Turkey, the demand for Indian jeera has decreased globally. Given the current pricing competitiveness in the worldwide market and the seasonality of exports, it is anticipated that the export scenario would remain muted in the upcoming months.

Exports decreased by 11.02% in September 2023 compared to August and by a significant 60.27% in comparison to September 2022. As open interest dropped by 3.72% to 3261, the market appears to be short covering technically.

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