MUMBAI (Commodity Online): Sideways trend was noted for Jeera as low arrivals amidst reports of export queries supported the prices. There are expectations of prices remaining firm in near term on expected rising demand.

Some export demand from Bangladesh, Nepal and Gulf have been reported.

Rains in Gujarat had been affecting the demand and created a bearish sentiment for some time. 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.

Reports indicate likelihood of a fall in production in the other growing countries of Turkey and Syria. Firm trend has been noted there. Demand from US and European countries likely to shift more towards India in coming weeks.

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.

Some strengthening in Dollar vs Re is likely to support the export demand in the coming days.

Latest reports from Spice Board of India indicates the exports for the period April-July have risen by 17% from 172,510 MT in 2009 to 193,875 MT in 2010. exports fell by 19% from 16,720 MT to 13,500 MT.

Courtesy: Religare Commodities

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