| Date: |
23-11-2011 |
| Subject: |
India Jeera to Slump on Weak Export Demand |
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MUMBAI (Commodity Online): Jeera traded slight weak in the Spot and the Futures market even as arrivals remained low. Low export demand and prospects of better sowing progress in the growing states kept the market sentiments weak for the commodity.
There are expectations however of exports picking up in coming weeks that could help the commodity find support at these lower levels.
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-Sept 2011 have fallen by 19% from 294925 MT in 2010 to 237585 MT in 2011. Jeera exports fell by 15% from 18800 MT to 16000 MT during the same period.
Source : commodityonline.com
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