The National Commodity and Derivatives Exchange’s (NCDEX) Jeera July contract prices just crossed the 52,000 mark, signalling a strong bullish trend in the market. This price increase is the result of a number of fundamental issues. The reduced production levels seen over the last two years are one of the main factors affecting the jeera market. The overall stockpiles of jeera that are currently on the market have decreased as a result of this fall in manufacturing.
A favourable environment for price growth has been generated by the tight supply combined with rising export market demand, especially from China. The growth in Chinese export demand has been a major factor in maintaining jeera prices. Farmers and retailers have been holding onto their stocks of jeera as a result of the increased demand, especially premium-quality products, in case prices continue to rise.
Market participants are taking a cautious stance as a result of the assumption of ongoing price appreciation since they want to maximise their prospective earnings. Additionally, this year’s harvests in Syria and Turkey have suffered from unfavourable weather conditions. Prices are also supported by a drop in supply brought on by unfavourable weather in these areas. Market players are consequently witnessing increased upward pressure on jeera prices.
The NCDEX has also added an extra 3% margin to both the long and short sides of jeera contracts. The goal of this policy is to manage the risk involved with jeera trading in addition to the current 5% additional margin. This extra margin has been imposed in order to account for market volatility and potential price changes. The jeera price is trading significantly over the 50,000 level, according to technical analysis. Support is currently at 48,650, while 52,600 is expected to be a point of resistance. The next resistance level is anticipated to be somewhere around 56,200 if the prices keep rising.
