Jeera Gains On Low-Level Buying

Jeera prices rebounded significantly, registering a gain of 2.61% and closing at 37,900, driven by low-level buying following a recent drop attributed to higher production expectations in Gujarat and Rajasthan. The prospect of aggressive sowing for Jeera in Gujarat and sluggish exports, coupled with a surge in production, had initially put pressure on prices. However, the recent uptick in prices can be attributed to renewed buying at lower levels. Sowing activities for Jeera in Gujarat have seen robust growth, with a staggering increase of nearly 103% reported, reaching 530,030 hectares compared to 261,635 hectares in the same period in 2022. Additionally, there has been a 13% increase in the sowing area in Rajasthan, totalling 6.32 lakh hectares. 

Global demand for Indian Jeera has declined as buyers prefer other origins like Syria and Turkey due to the relatively higher prices in India. Despite the competitiveness of Indian Jeera prices in the global market, exporters may face challenges due to the current pricing scenario. In October 2023, Jeera exports further declined by 13.39% month-on-month and 46.77% year-on-year, amounting to 6,228.01 tonnes. In Unjha, a major spot market, Jeera prices ended at 38,500.9 Rupees, reflecting a gain of 0.55%. 

From a technical standpoint, the market is undergoing short covering, with a 0.38% drop in open interest, settling at 3,126. Jeera is finding support at 36,970, and a breach could lead to a test of 36,030 levels, while resistance is expected at 38,630, with a move above potentially testing 39,350.