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Jeera Gains On Short Covering

New Delhi.Strong export demand and short covering drove a 0.46% increase in jeera prices, which ended the day at 25,290. Due to the recent tensions in the Middle East, Gujarati cumin seed exporters have seen an increase in business. Additionally, Indian cumin is priced more competitively than Chinese cumin, which is driving up demand. Pakistan and a number of other nations are purchasing Indian cumin, which is currently sold for between $3,150 and $3,200 per tonne. Between 100 and 125 containers of cumin have been exported in the past month, with 25 going to China and 35 to 40 going to Bangladesh.

The upside is still constrained, though, because Indian farmers still own an estimated 30% of the cumin crop. Sixty percent of the 12,000–17,000 bags that arrive at the Unjha market each day are from Rajasthan, with the remaining bags coming from local stockists and farmers. Prices have also been somewhat impacted by the lackluster demand in domestic markets. According to export data, cumin seed exports reached 103,614.46 tonnes between April and August 2024, an increase of 61.44% year over year. Despite a minor decrease from July 2024, August 2024 exports were up 88.53% from August 2023.

Technically, open interest dropped 1.31% to 1,803 as prices rose 115, indicating that the market is experiencing short covering. A break below 25,110, where Jeera is finding support, might result in a test of 24,930. Resistance on the upside is probably located at 25,460; a move above this level might cause prices to move toward 25,630. In the near future, prices may continue to be supported by the persistently high export demand. Mandi Bhav