February has been an excellent month for Cumin, with quite a few lows earlier and gradually increasing the price towards the end of the month.
Current Scenario
Several factors changed the market scenario for Cumin in February. The market experienced a sudden slump due to the war in Ukraine but recovered on Friday last week.
First, the price appreciation it had in January led to a slow-down of activity in the market. Also, the arrival of moisture-laden new crops put pressure on the price earlier this month.
However, as the month progressed and the news of low yield hit the market, the activity picked up.
Other factors that helped in improving the price of the spice in the market were:
- The sporadic arrival of the new crop in the spot markets while the old stock is low.
- The moisture content in the new stock made the price go up for the old quality stocks.
- The weather failed to support the quality of the crop. Mainly the unseasonal rain last year impacted the standing crop and its quality.
- In Gujarat spot markets, the arrival of the new crop has increased, which is of low to medium quality.
- The new crop has started arriving in the Rajasthan spot market, but it is low quality.
- Full-fledged arrival of the crop in Rajasthan is expected between 10 and 15 March, which is late compared to last year.
- The yield of Cumin is down to 316,281 MT compared to last year’s 391,801 MT.
- As a result, stockists have increased their purchases and put the commodity in cold storage, expecting the price to move north in the coming days.
- The fear of crop arrival getting low later in the year has made stockists very active in the market.
- Apart from the stockists, traders and other buyers are not being very active in the market due to the high price.
Prediction
The bullish trend for Cumin will continue, according to market experts. However, some traders believe that this upward trend will eventually burst for the commodity as the year progresses. At the moment, those who think that the price will fall are partially right, as the market witnessed a mixed reaction on Saturday. But how the overall trend will go is still to be determined as the next month progresses with the arrival of a new crop. Also, how the weather decreases the moisture content will determine the price of the produce.
Price Trend
Cumin A Grade 99% Pure
| Date | Price |
| February 28 (highest) | $2,74 per kg FOB |
| February 03 (lowest) | $2,26 per kg FOB |
For more information, facts and figures, become a member. Click here.