| Date: |
17-06-2011 |
| Subject: |
Jeera May Slump On Weak Exports |
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Sentiments remained weak for Jeera as absence of exports kept trend bearish despite fall in arrivals in the mandis.
Traders do not rule out further profit booking though some short covering at these low levels too cannot be ruled out before weekend.
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. Higher acreage expected in Gujarat and Rajasthan due to good moisture content in the soil.
Better Indian quality and availability of stocks could shift the Gulf demand ahead of Ramzan towards India in the coming weeks that could support the falling rates.
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-March 2010-11 have risen by 5% from 502,750 MT in 2009-10 to 525,750 MT in 2010-11. Jeera exports fell by 35% from 49,750 MT to 32,500 MT during the same period.
Source : commodityonline.com
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