MUMBAI (Commodity Online): Weakness in Dollar vs Re, and increased arrivals pressure in the mandis kept pressure on the market sentiments even as rates seem to find some support at these levels with traders expecting a rise in exports in coming weeks.
Reports on arrivals and the export demand would remain important for determining the short term trend.
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 Ministry, 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.
Courtesy:Religare Commodities
