Jeera, or cumin, faced a significant setback, declining by -5.98% to settle at 41475. This drop is attributed to favourable weather conditions supporting adequate soil moisture for crop-sowing activities. However, the downside is mitigated by stockists showing interest in buying amid the recent price downfall. The upcoming normal sowing season in Gujarat, marked by a substantial 116% increase in cumin sowing to 244,639.00 hectares, adds a positive note to the market dynamics.
Despite the optimistic domestic sowing scenario, global demand for Indian jeera has slumped. Buyers are turning to alternative sources like Syria and Turkey due to the comparatively higher prices of Indian jeera. The export seasonality indicates a likelihood of subdued export activity in the coming months. The competitive pricing of Indian jeera in the global market hasn't translated into increased overseas demand, keeping export activity restrained. The potential purchase by China in October-November adds an element of uncertainty to the market. The month-wise export data reveals a significant drop of 60.27% in September 2023 compared to the previous year.
From a technical standpoint, the market is undergoing long liquidation, with a -0.21% drop in open interest, settling at 2916. Correspondingly, prices have decreased by -2640 rupees. Jeera is currently finding support at 40490, and a further decline could test 39500 levels. On the upside, resistance is expected at 43450, with a potential breakthrough leading to a test of 45420 levels.
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