Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 31 July 2013

Turmeric yesterday settled up 0.7% at 5188 tracking firmness in spot demand amid short covering but upside was seen limited weighed by high stocks and good progress in sowing. The crop in Andhra Pradesh is expected to be good. Expectations of better sowing this year due to good rains in the growing states have been preventing any strong recovery. According to the state department of Agriculture, turmeric has been sown on an area of 0.35 lakh hectares (lh) in Andhra Pradesh as of July 24, higher when compared to the 0.31 lh reported during the same period last year. India's turmeric production in 2012-13 period is reported around 45 lakh bags, lower by 40-50%. It is estimated that current year's carry over stocks would be around 10 lakh bags according to the data released by the Spices Board. Exports from the country for 2012-13 period stood at 80,050 tons, marginally higher than 79,500 ton recorded in the previous year. The total turmeric acreage in Andhra Pradesh reported higher at 25937 hectares as against 22688 hectares year-on-year basis, according to the data released by the State Department of Agriculture. Farmers have good yellow spice stocks and showing their interest to sell. This is expected to put further pressure on the commodity movement to certain extent. In Nizamabad, a major spot market in AP, the price ended at 5438 rupees dropped -58 rupees. Technically market is under short covering as market has witnessed drop in open interest by -14.97% to settled at 12325 while prices up 36 rupee, now Turmeric is getting support at 5088 and below same could see a test of 4988 level, And resistance is now likely to be seen at 5254, a move above could see prices testing 5320.