MUMBAI (Commodity Online): No strong direction was there for Jeera as the rates tried to find support at these lower levels. Traders expect some more corrections in the short term before demand rises again in the mandis.

Rains in Gujarat had been affecting the demand and created a bearish sentiment over the last few days. But rising demand at the lower levels supported the falling rates.
Expectations of rising export and domestic demand amidst low stocks are expected to have bullish impact on price from a medium term point of view though short term trend remains volatile.

Firm trend in International markets in Turkey and Syria has been noted.

There are reports that traders are not willing to sell at these low levels and are expecting some recovery in rates in coming days. Prospects of a higher production this year have also been pressurizing prices to some extent. But a rise in export demand is expected to support the rates.

Some strengthening in Dollar vs Re is likely to support the export demand in the coming days. There are reports of farmers unwilling to sell at these low levels and holding back stocks in anticipation of a rise in price from these levels.

Latest reports from Spice Board of India indicates the exports for the period April-June have risen by 17% from 127,265 MT in 2009 to 148,730 MT in 2010. Jeera exports fell by 20% from 13,395 MT to 10,750 MT.

Courtesy: Religare Commodities

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