Short covering drove the recent price decline in jeera, which was ascribed to farmers sowing more cumin, to a slight increase of 0.48%, closing at 36,645. As opposed to 224,140 hectares during the same period last year, the most recent data shows a notable 94% increase in cumin cultivation in Gujarat, to 433,754 hectares. Additionally, the cultivation of cumin reached 6.32 lakh hectares in Rajasthan, a 13% rise.
Short covering has been brought on by the increase in cumin cultivation, which has affected jeera pricing. The comparably higher pricing in India have caused customers to choose other suppliers, such as Syria and Turkey, which has resulted in a decline in the global market for Indian jeera. Indian jeera’s competitive pricing in the worldwide market has restrained demand from outside.
Comparing April–September 2023 to the same period in 2022, jeera exports decreased by 29.79% to 76,969.88 tons. Exports of jeera saw a notable decline of 60.27% in comparison to September 2022 and a fall of 11.02% in August 2023.
The open interest to 3,171 is a 3.32% increase, suggesting that the market is showing signals of new buying. Support for Jeera is at 35,970, with a possible downside of 35,280. Resistance is probably at 37,850, and a breakthrough might result in testing at 39,040.
