India Jeera to Trade Down on Higher Sowing
Weak exports, good sowing reports and moderate arrivals kept pressure on the market sentiments for Jeera as rates crashed yet again Better crop pro-spects from Gujarat and Rajasthan affected the sentiments adversely.
Reports on the sowing progress in Gujarat and Rajasthan would be important for the short term market sentiments. Good rains early this year could have a positive impact on the sowing activities—as per traders.
Medium term trend looks firm from expected rise in export demand but short term trend is expected to remain volatile. A firmness in Dollar vs Re too could support the export factor
Lower production in Turkey and Syria could impart firmness to Indian rates.Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes.
Export demand from US and EU could also rise at these lower levels in com-ing weeks and that could have a moderate bullish impact on the prices.
Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-August 2011 have fallen by 23% from 255,100 MT in 2010 to 195,500 MT in 2011. Jeera exports fell by 39% from 15,700 MT to 9,500 MT during the same period.
Source : commodityonline.com
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