MUMBAI (Commodity Online): Jeera futures expected to extend uptrend on Tuesday on tight supply in the domestic markets amid strong spot demand.
However hopes on higher output in 2012 may limit the uptrend of jeera futures. In National Commodities & Derivatives Exchange (NCDEX) on Monday, February contract ended 1.39 percent higher at Rs.16,311 against the previous close.
As per the analysts from Angel Commodities, jeera prices in the intraday are expected to sideways to up due to lower arrivals in the domestic market. However, any reports of unfavorable weather may provide support to the prices in the short term. Fluctuations in temperature in the chief growing areas are likely to affect production as well as yield of jeera.
Reports as per data compiled by Gujarat Agri Department indicates more than 50% rise in sowing area to ~1.13 lakh ha vs ~0.50 lakh ha last year.
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. Export demand from US and EU could also rise at these lower levels in com-ing weeks and that could have a moderate bullish impact on the prices.
Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. (Each bag weighs 55 kgs).
According to Spices Board of India, exports of Jeera during April 2011- November 2011 stood at 26500 tonnes as compared to 20,750 tonnes in 2010-11, an increase of 27.7%.
