Commodity Trading Tips for Turmeric by Kedia Commodity

Turmeric on NCDEX settled down by -0.87% at 6862 due to increasing arrivals as harvesting is going on in key producing states of Maharashtra, Tamil Nadu and Karnataka. Though, improved demand for exports and up-country buyers capped some losses in turmeric prices. Production of turmeric in Telangana is seen rising 35% on year to 251,000 tn 2016-17 (Jul-Jun) due to favourable rains, according to the second advance estimate shared by an official from Telangana's farm department. 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. At Nizamabad market, sources reported arrivals at 8000 quintals, higher by 2000 quintals as against previous day. Spot turmeric prices increased at Erode markets. Turmeric arrivals remain stable. Around 3,600 bags arrived for sale. The arrival of new turmeric increased to 400 bags and the buyers quoting Rs. 8,600 a quintal for the new Mysuru Eight variety purchased all the 400 bags. Further the buyers have purchased about 70 per cent stock. Regarding the price, the finger variety increased by Rs. 100-150 a quintal and the root variety by Rs. 100. At the Erode Turmeric Merchants Association, the finger variety was sold at Rs. 5,214-8,689 a quintal; the root variety Rs. 5,014-7,869. Of the arrival of 1,526 bags, 628 were sold. In Nizamabad, a major spot market in AP, the price ended at 7352.8 Rupees dropped -26.6 Rupees. Technically now Turmeric is getting support at 6826 and below same could see a test of 6790 level, And resistance is now likely to be seen at 6904, a move above could see prices testing
6946.

Trading Ideas:

# Turmeric trading range for the day is 6790-6946.

# Turmeric prices dropped due to increasing arrivals as harvesting is going on in key producing states of Maharashtra,

# Though, improved demand for exports and up-country buyers capped some losses in turmeric prices.

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

# In Nizamabad, a major spot market in AP, the price ended at 7352.8 Rupees dropped -26.6 Rupees.