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Jeera prices experienced a notable decline of -4.74% on the previous day, settling at 53,695 due to profit booking. This drop can be attributed to sluggish export demand, which has led to profit-taking by traders. However, there are limitations to the downside movement due to the constrained availability of high-quality crops. The global demand for Indian has slumped, with buyers preferring alternative sources like Syria and Turkey due to the comparatively higher prices in India. Despite the decline in global demand, Indian jeera remains competitively priced in the international market, thereby restraining overseas demand.
Unfortunately, this competitive pricing does not favor exporters at present, indicating subdued export activity in the weeks ahead. China, a significant buyer of Indian jeera, has reduced its purchases in recent months, exerting downward pressure on Indian exports. The potential for China to resume purchasing Indian cumin in October-November, just before the arrival of the new crop, adds further uncertainty to market dynamics. As for recent export data, jeera exports from April to August 2023 saw a significant drop of 23.76%, totaling 69,779.04 tonnes compared to 91,529.49 tonnes during the same period in 2022.
From a technical perspective, the market is currently witnessing fresh selling, with open interest increasing by 3.02% and settling at 4,503. Jeera prices have fallen by -2,670 rupees. Support for jeera prices is anticipated at 52,260, and a breach of this level could lead to a test of 50,830. On the flip side, resistance is expected at 55,860, and a move above this level could result in prices testing 58,030.
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