Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar 23 February 2012

Turmeric yesterday we have seen that market has moved -0.38% due to higher supplies from the new season crop and estimates of a bumper crop. Turmeric output in the southern state of Andhra Pradesh, India's top producer of the spice, is likely to rise 36 percent on year to 83,000 tonnes in 2012 due to an expansion in acreage. Turmeric arrivals from the new crop have started in the spot markets. The total production this year is expected to touch 75-85 lakh bags higher than the 65-70 lakh bags in 2010-11. Higher acreage from the high rates is stated the reason for the rise in expected production. Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January. High moisture content in the current crop kept demand low and thus kept pressure on the market prices. With an expected 5-6 lakh bags of old stocks with farmers, there are expectations of higher arrivals of these stocks in the markets before new crop arrivals. Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-Nov 2011 have risen by 63% to 58000 MT in 2011 from 35500 MT in 2010 same period. In Nizamabad, a major spot market in AP, the price ended at 4539.65 rupees dropped by -122.45 rupees. Market has opened at 4670 & made a low of 4660 versus the day high of 4764. The total volume for the day was at 7430 lots and the open interest was at 16125.Support for turmeric is at 4643 below that could see a test of 4599. Resistance is now seen at 4747 above that could see a resistance of 4807.