Due to strong export demand and predictions of fewer supplies at the end of the current marketing year, jeera yesterday finished up 1.35% at 44695. 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. Cumin demand is expected to exceed 85 lakh bags this year, with a probable 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.
Technically, the market is under short covering as open interest decreased by -3.73% to settle at 8139 while prices increased by 595 rupees. Currently, Jeera is receiving support at 44130; a move below could result in a test of the 43570 levels. Resistance is now anticipated to be seen at 45020; a move above could result in a test of 45350.
