Turmeric yesterday settled up 0.85% at 5952 on short covering after prices seen pressure due to mounting stocks and good progress of sowing. Turmeric cultivation usually starts in June and continues until August. A lengthy harvesting process begins in January. Demand is not supportive in turmeric. Overseas demand is not improving as was expected. With good rainfall reports in the growing areas preventing rates from moving up a lot. Expectations of rise in domestic demand are there once skies clear in North India. Overall good rainfall activity in growing states of AP, Karnataka and Tamil Nadu could prevent strong upside movement. The sowing process to start over the next few months would be benefitted by early rains. Demand for the commodity is quite good as major portion is consumed by local players and annual export may be come near 80,000 tonnes. Stockiest are having stocks of turmeric, which is expected to fetch marriage season demand. However, prices may recover during mid June, as selling is expected to ease. Meanwhile all the eyes are on how good monsoon, water availability and sowing of the commodity. Sowing of the commodity will be influenced by arrival of monsoon and prices prevailed in the previous year. Normally, most spices trade lower in May-June mid, due the heat and lack of much participation from north Indian traders in the market. Technically market is under fresh buying as market has witnessed gain in open interest by % to settled at while prices up 50 rupee, now Turmeric is getting support at 5818 and below same could see a test of 5683 level, And resistance is now likely to be seen at 6034, a move above could see prices testing
6115.

Trading Ideas:

Turmeric trading range for the day is 5681-6113.

Turmeric recovered on short covering after prices seen pressure due to mounting stocks and good progress of sowing.

With good rainfall reports in the growing areas preventing rates from moving up a lot.

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 5269 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5715 rupees remains unchanged at0 rupees.