| Date: |
08-08-2011 |
| Subject: |
Jeera May Extend Downtrend On Weak Exports |
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MUMBAI : Jeera showed a bearish trend last week as export demand got adversely affected at the higher levels. Weakness in Dollar vs Re too affected the exports as traders waited for dips before initiating fresh queries.
A weakness in Agri market sentiments has been affecting most commodities. Traders however expect the demand to rise in the coming weeks that could support the falling rates.
Reports of adverse weather conditions in other major producers like Turkey and Syria have created apprehensions of lower output there and a possibility of delayed arrivals, originally scheduled from end-June onwards. 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. Better Indian quality and availability of stocks could shift the Gulf demand ahead of Ramzan towards India in the coming weeks.
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
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