MUMBAI (Commodity Online): Weakness persisted for Jeera rates as further fall in Dollar vs Re kept pressure on the market sentiments and the Spot rates. Arrivals too rose which created a further bearish impact on the market.
New crop arrivals have started slowly and expected to pick up in coming days. Demand remained moderate but expected to pick up only after new crop arri-vals in coming weeks. Uncertainty over production aspects could support the market sentiments to some extent in the medium term
Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year. As per Rajasthan Agricultural Minis-try, the sowing area till 20th Dec had been reported at 3.03 lakh ha vs 3.30 lakh ha same period last year. Productivity of crops in both states however expected to fall due to adverse weather conditions as per reports.
Exporters are reportedly waiting for the new crop which is affecting the demand adversely.
The better crop expectations from Gujarat and Rajasthan could be hampered by reports of adverse weather conditions in growing areas that could affect the productivity to some extent as per traders.
Lower production in Turkey and Syria could support Indian rates. Indian production expected at 28-30 lakh bags translating to more than 1.5 lakh tonnes.
Latest report from Spice Board of India indicates estimated Spices exports for April-Nov 2011 have fallen by 5% from 372010 MT in 2010 to 351900 MT in 2011. Jeera exports rose by 28% from 20750 MT to 26500 MT in same period.
Courtesy:Religare Commodities
