MUMBAI (Commodity Online):No new Fundamental reports were there as Unjha mandi remained closed for Festival this week, Jeera traded with high volatility.
There have been some recovery in the market rates and short covering at these levels cannot be ruled out by this week end. Exporters reportedly waiting for the prices to fall before initiating fresh demand in the markets.
Firmness in International market rates from Turkey and Syria could support the Indian rates –as per traders.
Medium term trend looks firm from expected rise in export demand but short term trend is expected to remain volatile. A firmness in Dollar vs Re too could support the export factor.
Reports of adverse weather conditions in other major producers like Turkey and Syria have created apprehensions of lower output there. Syrian production expected at 40000 tonnes and that in Turkey lower at 12-15000 tonnes.
Indian production 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 coming weeks and that could have a moderate bullish impact on the prices.
Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-August 2011 have fallen by 23% from 255,100 MT in 2010 to 195,500 MT in 2011. Jeera exports fell by 39% from 15,700 MT to 9,500 MT during the same period.
Courtesy: Religare Commodities
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