Turmeric on NCDEX settled up by 2.66% at 6802 on anticipation of rising physical as well as export demand at the spot market. Turmeric output is seen higher at 7 million bags thanks to higher sowing and favorable weather conditions. Prevailing high prices encouraged farmers to plant more turmeric this year. Expectations of increasing production in coming harvesting season and lowering export demand in recent months are putting pressure on turmeric prices at higher levels. Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year. India exported about 51,147 ton in 2016-17 until August which is up by 32% compared to last year in the corresponding period of 38,761 ton, as per the data released by Department of Commerce. At Warangal market total arrivals are at 100 bags, unchanged as compared to previous day’s arrival. At Nizamabad market total arrivals are at 1600 quintals, lower by 400 quintals from previous day’s arrivals. Spot turmeric prices decreased at Erode markets as only medium and poor quality produce arrived for sale. The arrivals increased, but the sale remains at 60 per cent. This is due to the arrival of medium and poor quality turmeric. Around 3,200 bags arrived for sale and 50 per cent of the stocks were sold. The finger variety was down Rs. 400 a quintal and the root variety by Rs. 350. In Nizamabad, a major spot market in AP, the price ended at 7300 rupees gained 75 rupees.Technically market is under short covering as market has witnessed drop in open interest by -0.89% to settled at 12750 while prices up 176 rupee, now Turmeric is getting support at 6654 and below same could see a test of 6508 level, And resistance is now likely to be seen at 6908, a move above could see prices testing 7016.

Trading Ideas:

Turmeric trading range for the day is 6508-7016.

Turmeric prices gained on anticipation of rising physical as well as export demand at the spot market.

Turmeric output is seen higher at 7 million bags thanks to higher sowing and favorable weather conditions.

Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year.

In Nizamabad, a major spot market in AP, the price ended at 7300 rupees gained 75 rupees.