Rates fired up for Jeera as it neared its highest levels during the month of July. Exports shot up as arrivals fell in Unjha mandi. Reports from the International markets too were showing Bullish signs.

There were apprehensions that production in Turkey and Syria – the other growing countries, were slightly on the lower side. With poorer quality stocks there and rates being firm, it affected the Indian markets also.

The export demand shifted to this country and with domestic demand too rising from the festival season ahead, Jeera rates continued its uptrend. Firmness in Dollar vs Re rates too supported the export prospects for the commodity.

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. However, with firm International trend and exports and domestic demand rising, one can witness a significant surge in demand for Jeera in the coming weeks.

Reports of stockists holding back stocks in anticipation of a rise in price in the coming weeks have affected the arrivals and this created further support to the rising rates. Short term sentiments however continued to get affected by the weather in Gujarat. Rains there have created some bearish impact on the prices as the demand got affected. Exporters were also waiting for some fall in prices when the rates moved up significantly for making fresh purchases.

Thus, based on these factors one can witness increased volatility in the month of August. Volumes in the Exchanges have shot up showing high trading interest in this commodity amidst high volatility.

Technical and Fundamental factors are showing a bullish trend but a lot would depend on the export factor and the trend in the International markets.

Courtesy: Religare Commodities

Get Trading Tips that suits your profile and budget

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook