Commodity market today: Due to low yield in India and rising demand in domestic and international market, Jeera price today climbed to a new life-time high of ₹46,250 per quintal on NCDEX (National Commodity Exchange), bettering its previous record high of ₹42,440 per quintal. Jeera future contract for May 2023 on NCDEX today opened upside and went on to hit new highs of ₹46,250 levels. However, profit booking soon triggered and the commodity price is current quoting ₹45,370 per quintal on NCDEX.

According to commodity market experts, Jeera prices are rising due to the low yield expected in the upcoming season leading to demand-supply constraints in the domestic market. However, they said that due to rise in demand and lower supply by Syria and Turkey in the international market is expected to fuel Jeera prices in international market as well. They said that uptrend in Jeera prices are expected to continue and advised commodity future traders to remember the immediate support of ₹43,000 per quintal and strong support levels at ₹41,00 levels. They maintained that Jeera future contact for May 2023 is facing immediate hurdle at ₹46,500 levels whereas major resistance is placed at 48,200 levels. On breaching ₹48,200 levels, one can expect the Jeera prices to go up to ₹51,000 per quintal levels by end of September 2023.

Jeera price outlook

Speaking on the reason for rise in Jeera prices, Amit Sajeja, Vice President — Research at Motilal Oswal said, "Jeera prices are rising due to growing demand-supply constraint in both domestic and international market. In India, supply is not meeting the demand as expected yield this year is grim due to rains during January and February month this year. Apart from this, Syria and Turkey are also facing supply crisis as they are also not able to meet their demand in the export market."

On why Jeera prices may continue to touch new peaks in near term, Anuj Gupta, Vice President — Research at IIFL Securities said, "There is huge demand for Jeera from China in the international market and due to lower supply by Syria and Turkey, India has become a natural supplier of Jeera to China and other countries. So, rising export from India is also a big reason for demand-supply constraint in the domestic market."

On outlook for Jeera price Amit Sajeja of Motilal Oswal said, "Jeera prices have hit new peak and one should wait for some downside for fresh entry whereas those who have position in the commodity may continue to hold the agro commodity with trailing stop loss at ₹43,000 levels. Once it breaches its current hurdle, it may soon go up to ₹48,200 levels. However, on sustaining above ₹48,200 per quintal levels, we can expect the commodity price to go up to ₹51,000 levels by end of Q2FY24 i.e. by end of September 2023."

Expecting the big return in Jeera to further continue, Anuj Gupta of IIFL Securities said, "Jeera has been giving higher return to its investors for last three years. In 2021, Jeera gave 28.35 per cent return to its investors whereas in 2022 it has given over 92 per cent upside movement. In 2023, the commodity price has risen over 45 per cent in YTD time."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

ABOUT THE AUTHOR Asit Manohar Chief Content Producer at Live Mint Digital Team Read more from this author