Jeera prices experienced a 2.49% drop, closing at 61,605, mainly due to profit booking, driven by sluggish export demand. Indian jeera remains less competitive in the global market, hindering overseas demand. China, a major buyer of Indian jeera, has reduced its purchases recently, impacting overall Indian exports. The lack of price competitiveness for Indian jeera is expected to keep export activity subdued in the coming weeks. The uncertainty in market dynamics is further heightened by the possibility of China resuming Indian cumin purchases in October-November before the new cumin crop arrives.
Additionally, drier weather conditions in Gujarat are expected to lead to increased arrivals, limiting upward price movement. According to FISS forecasts, cumin demand is expected to exceed supply this year, with demand reaching 85 lakh bags and supply likely at 65 lakh bags. In the Apr-Jun 2023 period, jeera exports increased by 13.16% compared to the same period in 2022. However, in June 2023, exports saw a significant drop of 59.81% compared to May 2023 and a 51.78% decrease compared to June 2022. In the Unjha spot market, jeera prices ended at 61,321.6 Rupees, with a slight gain of 0.06%.
From a technical perspective, the market has seen fresh selling, with a 0.3% increase in open interest, settling at 4,962. Prices have dropped by -1,570 rupees. Key support for Jeera stands at 60,680, with a potential test of 59,740 if this level is breached. Resistance is likely at 63,050, and a move above could lead to testing at 64,480.
