Jeera expected to drop on weak exports

Jeera Expected To Drop On Weak Exports

MUMBAI (Commodity Online): Sentiments failed to pick up for Jeera as lower export demand amidst moderate arrivals pressurized the market rates further. Some more short term corrections in rates are possible—as per traders before exports pick up in coming months.

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.

Reports of adverse weather conditions in other major producers like Turkey and Syria have created apprehensions of lower output there. Syrian production expected at 40000 tonnes and that in Turkey lower at 12-15000 tonnes.

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 coming 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-June 2011 have fallen by 26% from 157,850 MT in 2010 to 116,900 MT in 2011. Jeera exports fell by 46% from 10,600 MT to 5,750 MT during the same period.

Source : commodityonline.com