Jeera gained as supply is limited due to the rainy environment.

Jeera yesterday settled up by 0.79% at 59055 as supply is limited due to the rainy environment. However, the upside seen is limited in the wake of improved global supply conditions. The cheaper availability of Syria and in the global market will lead to a fall in export demand from India in the coming days. The drier weather condition in Gujarat will also lead to a rise in arrivals that will cap the upwards move. 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. 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-Jun 2023, rose by 13.16 per cent at 53,399.65 tonnes as compared to 47,190.98 tonnes exported during Apr-Jun 2022. In Jun 2023 around 10,411.14 tonnes of jeera was exported as against 25,903.63 tonnes in May 2023 showing a drop of 59.81%. In Jun 2023 around 10,411.14 tonnes of jeera was exported as against 21,587.63 tonnes in Jun 2022 showing a drop of 51.78%. In Unjha, a major spot market, the price ended at 60409 Rupees gained by 0.22 per cent. 

Technically market is under short covering as the market has witnessed a drop in open interest by -4.64% to settle at 6600 while prices are up 465 rupees, now Jeera is getting support at 57760 and below the same could see a test of 56450 levels, and resistance is now likely to be seen at 59930, a move above could see prices testing 60790.