Commodity Trading Tips for Turmeric by Kedia Commodity

Turmeric on NCDEX settled up by 1.99% at 6758 on anticipation of good demand from the stockists and traders at the spot market. Though, some gains were capped on expectation of better supplies of new turmeric crops from the producing belts. 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. At Nizamabad market, total arrivals are at 5000 quintals, lower by 3000 quintals as compared to previous day. At Erode market, estimated market supply was at 1800 quintals, higher by 100 quintals as against previous day. Spot turmeric arrivals decreased at Erode markets. But, prices did not improve. Because of lower prices, growers brought only 1,900 bags of medium variety turmeric for sale. 70 per cent of the arrivals were sold. Around only 80 bags of new turmeric crop arrived for sale. At the Erode Turmeric Merchants Association, the finger variety was sold at Rs. 5,650-8,525 a quintal; the root variety Rs. 5,099-7,814. Of the arrival of 1,506 bags, 702 were sold. In Nizamabad, a major spot market in AP, the price ended at 7392.1 Rupees gained 19.9 Rupees.Technically market is under short covering as market has witnessed drop in open interest by -1.93% to settled at 13495 while prices up 132 rupees, now Turmeric is getting support at 6674 and below same could see a test of 6590 level, And resistance is now likely to be seen at 6806, a move above could see prices testing 6854.

Trading Ideas:

Turmeric trading range for the day is 6590-6854.

Turmeric prices gained on anticipation of good demand from the stockists and traders 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 7392.1 Rupees gained 19.9 Rupees.