MUMBAI (Commodity Online): Jeera recovered moderate on short covering from the lower levels. Sentiments likely to remain slight weak however as low demand, increased arrival pressure of the new crop and falling Dollar vs Re kept pressure on the prices.
Trend likely to remain volatile based on the arrivals, production aspects, weather in Gujarat, export queries and the Dollar-Re movement which could affect the exports to some extent.
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 for creating fresh demand in the mandis.
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 pro-duction 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
