MUMBAI (Commodity Online): Rates shot up for Jeera on export queries. The rates had fallen to significantly low levels over last few months and a rise in exports in expected in coming weeks. That is likely to support the prices in the coming weeks.
Better crop expectations from Gujarat and Rajasthan could temper the rising rates in coming weeks as per traders.
Reports as per data compiled by Gujarat Agri Dept indicates more than 50% rise in sowing area to ~1.13 lakh ha vs ~0.50 lakh ha last year.
Good rains early this year could have a positive impact on the sowing activities in Gujarat and Rajasthan. 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 support Indian rates. Indian pro-duction 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 estimated exports of Spices for April-Oct 2011 have fallen by 11% from 333130 MT in 2010 to 288100 MT in 2011. Jeera exports rose by 4% from 19800 MT to 20400 MT during same period.
Source : commodityonline.com