Jeera dropped on profit booking after prices gained as supply is limited

 2023-08-08

Jeera yesterday settled down by -0.45% at 63115 on profit booking after prices gained as supply is limited due to the rainy environment. However, the cumin market is currently facing slow export and domestic demand. Due to heavy rains impacting cumin quality, there have been disruptions in the cumin business across Gujarat, Rajasthan, and other regions. China’s cumin imports and exports have caused temporary corrections in cumin prices, with a recent $200 decrease in the international market. The possibility of China purchasing Indian cumin in October-November before the arrival of new cumin adds further uncertainty to the market dynamics. 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 -139.4 Rupees to end at 62044.3 Rupees per 100 kg.

Technically market is under fresh selling as the market has witnessed a gain in open interest by 14.76% to settle at 4713 while prices are down -285 rupees, now Jeera is getting support at 62740 and below same could see a test of 62370 levels, and resistance is now likely to be seen at 63740, a move above could see prices testing 64370.

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Commodities News

2023-08-08 03:45