Due to strong export demand and predictions of fewer supplies at the end of the current marketing year, jeera rose 0.7% yesterday to conclude at 44015. Prices increased as crop worries grew as a result of Rajasthan, the state that produces the majority of the crops, experiencing unseasonal rains and hailstorms. This season, the market is anticipating lower yields and higher quality jeera, which has increased demand from both domestic and international purchasers.
Concerns about the crop status have been raised by recent unseasonal rains that have fallen in the jeera-growing regions of southern and northern Rajasthan in the districts of Alwar, Jaisalmer, Jaipur, Bikaner, Bhilwara, and Barmer. In preparation for the increase in the seasonal supply of jeera in Gujarat and Rajasthan, marginal traders are refraining from mass purchases. 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’s price decreased by -534.95 rupees to finish at 45681.4 rupees per 100 kg in Unjha, a significant spot market in Gujarat. Technically, the market is in short covering mode as evidenced by the market’s drop in open interest of -2.58% to settle at 7599 while prices are up 305 rupees. Currently, Jeera is receiving support at 43200, and a move under this level could result in a test of the 42385 levels. Meanwhile, a move above this level could result in a test of the 45005 levels.
