NCDEX Jeera Falls on Higher Output Concerns

Jeera prices continued to remain bearish and traded near two percent circuit and settled 0.69% lower on Thursday. Favourable weather for jeera in the chief growing areas (Gujarat and Rajasthan) and thereby expectation of better output and yield led prices to remain weak on Thursday. Spot prices ended 0.94% lower yesterday.

According to Gujarat farm ministry, area sown under jeera till January, 18th 2012 stood at 3.682 lakh hectares (lh) up 50% as compared to last year while area covered in Rajasthan till date is expected to be 3.03 lakh hectares as compared to 3.30 lakh hectares in the same period last year. Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year.

Prices in the global markets of Indian origin are quoting around $2,800-2,950/tn while Syrian origin is quoting at $3,100-$3,150/tn.

Production, Arrivals and Exports

Unjha markets witnessed arrivals of 3,500 bags while offtakes stood at 8,000 bags on Thursday.

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). (Source: spot market traders).

According to Spices Board of India, exports of Jeera during April 2011-November 2011 stood at 26,500 tonnes as compared to 20,750 tonnes in 2010-11, an increase of 27.7%.

India soy complex declines on poor domestic demand

Soybean prices declined in the second session owing to the weak buying activities across major spot markets. Spot prices dropped marginally by `10-15/quintal across major markets as lower crushing margin in during current week kept the buyers inactive.

CBOT soybean futures ended slightly higher on weak dollar index and taking cues from revised production estimates for Argentina regions which is lowered to 46.5 million tons.

Soy oil prices declined on Thursday owing to weak demand across spot markets. Refined soy oil spot prices remained at `655/10kg in Indore markets.

Higher imports during January month is affecting market sentiments despite data release is in the next week. CBOT soy oil prices remained higher supported by weaker dollar and better exports data during last week.

Mustard seed prices extended the losses yesterday as the arrivals season is gaining momentum across major spot markets.

Ex- Kandla meal prices dropped more then `200-300/ton during the week due to absence of meal demand. Mustard oil prices also dropped which kept prices under pressure.