Jeera expected to decline on poor exports.

Profit booking at higher levels along with slight weak trend in the mandis from higher arrivals and lack of export demand pressurized the market rates for Jeera. Clearer skies in Gujarat supported the sowing activities thus further pressurizing the market sentiments for the commodity. All eyes are now on the sowing aspects that have picked up after skies cleared in Gujarat and Rajasthan. Higher acreage expected in Gujarat and Rajasthan due to good moisture content in the soil. But recent heavy rains have delayed the sowing and this could have a medium term bullish impact on the prices as per traders. Figures on sowing would remain critical for determining short to medium term trend.


Expectations of rising export and domestic demand amidst low stocks are expected to have bullish impact in medium term. But short term trend would depend on the sowing prospects depending on the weather in growing areas. Demand from US and European countries likely to shift more towards India in coming weeks due to low stocks in the International markets. Latest reports from Spice Board of India indicates the exports of Spices for the period April Oct have risen by 6% from 299 250 MT in 2009 to 317,800 MT in 2010. Jeera exports fell by 36% from 31 300 MT to 20000 MT during the same period.


Source : www.indiainfoline.com