Export may provide bullish impact on Jeera.

Markets failed to take any clear direction for Jeera last week as low export demand prevented any major upside movement. Markets however seem to stabilize at the lower levels and traders are expecting a rise in exports in coming weeks to support the prices. Rains in Gujarat had been affecting the demand and created a bearish sentiment for some time. Expectations of rising export and domestic demand amidst low stocks are expected to have bullish impact in medium term point. 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.

Source : indiainfoline.com