Jeera May Extend Downtrend on Weak Exports
Low export demand in the mandis kept trend weak for Jeera as further corrections were noted.
Some moderate domestic demand was there but weak exports pressurized the rates as traders waited for further fall in prices before initiating fresh demand in the mandis.
Firmness in International market rates from Turkey and Syria could support the Indian rates also –as per traders.
Medium term trend looks firm from expected rise in export demand but short term trend is expected to remain volatile. 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 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-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: Commodity Online
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