Due to strong export demand and predictions of lower stock levels at the end of the current marketing year, jeera yesterday settled higher by 1.62% at 54510. Prices increased as concerns about the harvest grew owing to hailstorms and unseasonal rains in Rajasthan, the state that produces the majority of the food. Demand from domestic and international purchasers has increased as a result of the market’s expectation of a lower yield and quality of jeera this season. The jeera-growing areas in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer in southern and northern portions of Rajasthan have recently experienced a fresh round of unseasonal rainfall, raising fears about the crop’s health.
Due to the expected increase in the seasonal supply of jeera in Gujarat and Rajasthan, margin dealers are avoiding making large purchases. Market supplies that were below average helped keep prices firm. On June 6, approximately 508 tonnes of jeera landed at significant APMC mandis throughout India as opposed to 653 tonnes the day before. Lower output and tighter carryover stockpiles will result in further price increases. 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 edged up by 1613.55 rupees to conclude at 55205.05 rupees per 100 kg in Unjha, a significant spot market in Gujarat. Technically, the market is being shorted as open interest has decreased by -3.71% to settle at while prices have increased by 870 rupees. Currently, Jeera is receiving support at 53820, and a move below that level could result in a test of 53135 levels. Resistance is now anticipated to be seen at 55140, and a move above could result in prices testing 55775.
