Jeera yesterday settled up by 0.54% at 59980 as prices dropped on late profit booking after prices rose as arrivals in Gujarat and Rajasthan have decreased due to heavy rainfall. Farmers need assistance to bring their produce to the market. However, after the rains subside, cumin arrivals are expected to increase, potentially impacting market dynamics. Support is also seen due to good export demand and expectations of lower stocks end of the current marketing year.
Prices rose on crop worries grow due to unseasonal rains and hailstorms in Rajasthan, the major producing state. Cumin imports in May 2023 reached 210 metric tons, showing a substantial increase of 227.73% compared to the previous month's import volume of 64 metric tons. According to FISS forecasts, cumin demand is predicted to exceed 85 lakh bags this year, with a likely supply of 65 lakh bags. Jeera exports during Apr-May 2023, rose by 67.90 per cent at 42,988.50 tonnes as compared to 25,603.35 tonnes exported during Apr-May 2022. In May 2023 around 25,903.63 tonnes of jeera was exported as against 17,084.87 tonnes in April 2023 showing a rise of 51.52%. In May 2023 around 25,903.63 tonnes of jeera was exported as against 14,894.62 tonnes in May 2022 showing a rise of 73.91%. In Unjha, a key spot market in Gujarat, jeera edged down by -600.3 Rupees to end at 60762.25 Rupees per 100 kg.
Technically market is under short covering as the market has witnessed a drop in open interest by -4.48% to settle at while prices are up 325 rupees, now Jeera is getting support at 59040 and below same could see a test of 58105 levels, and resistance is now likely to be seen at 61110, a move above could see prices testing 62245.