They also said they see a modest recovery of prices in the near term, but dont expect it to sustain due to good supply. India is the worlds largest producer and consumer of jeera. While India consumes 75-80% of the commodity produced, other producers export most of what they produce.
In the near term, jeera prices could move up by R300-400 per quintal due to technical reasons. Prices have fallen sharply in the last two weeks, from R14,800 per quintal to R13,500, and a correction is likely. But the outlook for the medium term remains weak due to good production estimates, Faiyaz Hudani at Kotak Commodity Services said. Spot price in Unjha on Thursday was recorded as R14,314/quintal.
Vedika Narvekar, analyst at Angel Commodities, feels that demand from millers, as well as overseas buyers, at lower levels will support the market. Prices have corrected sharply on account of higher sowing as well as conducive weather in Gujarat, Indias main jeera-growing region. But we dont see an upside in the market because of good supply from three consecutive good crops. The last crop was historically the highest. Sowing for the new crop was lower than last years, but still higher when compared to the average, she added.