Turmeric on NCDEX settled up by 0.41% at 6832 driven by firm trend in the spot markets. However, gains remained capped on expectations of increasing production in coming harvesting season and lowering export demand in recent months. Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year. The harvesting is going on in key producing states – Maharashtra, Tamilnadu and Karnataka. On the export front, country exported about 74,524 tonnes, up by 32% during April-Nov period compared last year exports of 56,471 tonnes, as per government data. In Sangli (Maharashtra), new Turmeric crop coming to the market with small quantity around 450 bags (1 bag = 70kgs), for new crop price quoted in a range of Rs. 6800 - Rs. 8000/qtl depends on quality and variety. Turmeric crop reported well in Maharashtra state expected better production compared to last year. As per trade information, from Karnataka Belgaum district new Turmeric will come to the market from February first week. In Nizamabad major growing regions Turmeric standing crop also reported well. As per production estimate, Turmeric production reported higher by around 7.5% during current year. Spot turmeric prices increased at Erode markets on strong demand for the new turmeric. Being the last auction sale for the week, the turmeric farmers brought 3,500 bags including 500 bags of Mysore Number Eight variety. The traders procured all the 500 bags for Rs. 8,600 a quintal. In Nizamabad, a major spot market in AP, the price ended at 7342.1 Rupees dropped -10.85 Rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 0.08% to settled at 13085, now Turmeric is getting support at 6798 and below same could see a test of 6764 level, And resistance is now likely to be seen at 6868, a move above could see prices testing 6904.

Trading Ideas:

# Turmeric trading range for the day is 6764-6904.

# Turmeric prices ended with gains driven by firm trend in the spot markets.

# As per production estimate, Turmeric production reported higher by around 7.5% during current year.

# In Sangli, new Turmeric crop coming to the market with small quantity around 450 bags.

# In Nizamabad, a major spot market in AP, the price ended at 7342.1 Rupees dropped -10.85 Rupees.