Volatile Trend Seen in Jeera, Exports May Pickup .

MUMBAI (Commodity Online): Low trading activities continued to keep Jeera trend sideways. Traders are waiting for exports to rise in coming weeks.

With overall trading activities being low, the upside trend too seems limited till exports rise significantly. Domestic Festive demand supported the prices to some extent as low arrivals persisted in the markets.

Firmness in International market rates from Turkey and Syria could support the Indian rates –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.

Reports of adverse weather conditions in other major producers like Turkey and Syria have created apprehensions of lower output there. 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.

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-August 2011 have fallen by 23% from 255,100 MT in 2010 to 195,500 MT in 2011. Jeera exports fell by 39% from 15,700 MT to 9,500 MT during the same period.

Source : commodityonline.com