Jeera futures may trade sideways: Angel

Angel Commodities report on Agri Commodities,

Spices

Jeera

Jeera futures traded on negative note and closed 0.50 % lower on profit booking as supplies are more than the demand in the spot market as export demand is reducing on quality issues. Meanwhile, the traders and stockiest were active in the spot market at lower levels on expectation of demand from the domestic market as the production has been down this year.

Production and Exports

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As per third advance estimate of Gujarat State, production is expected at 1.58 lakh tonnes in 2014-15 which is 54.3 per cent lower compared to last years’ production of 3.46 lakh tonnes. According to Gujarat government data released on 19th Jan 15, Jeera recorded 2.64 lakh hac, 42% less sowing compared to last year’s 4.54 lakh hac.

There is concern over production due to untimely rainfall in March in Gujarat and Rajasthan. As per Government data, 2.41 lakh hectare of cumin crop is damaged in Rajasthan.

According to latest spice board press release, cumin export is stood at 155,500 tonnes for 2014-15 period and earned foreign exchange worth Rs 1,838.20 crore while in 2013-14, the figures stood at 121,500 tonnes valued at Rs 1,600 crore. Export orders are diverted to India due to Geo-political tensions in Syria and Turkey.

Outlook

Jeera futures may trade sideways on good demand at lower prices from the local traders and stockists but there is subdued export demand on quality issues. Retailers and stockiest are buying at lower prices as monsoon progresses is normal.

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