Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 1 March 2012

Turmeric yesterday we have seen that market has moved -1.02% due to mounting supplies from the new season crop and estimates of a bumper crop as farmers expanded area under cultivation. 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. With increased arrivals however, the uptrend may be limited till demand picks up. There are expectations though of exports rising in coming weeks. Short term trend looks weak till exports pick up as per traders. Holding of stocks by Stockists however could support the rates in coming weeks and expectations of exports picking up in coming weeks too could support prices. Higher production prospects and better stocks could however keep pressure on prices as markets trade with high volatility. Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc. The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - 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 as per traders. In Nizamabad, a major spot market in AP, the price ended at 4498.6 rupees gained by 1.25 rupees. Market has opened at 4900 & made a low of 4742 versus the day high of 4980. The total volume for the day was at 16170 lots and the open interest was at 17280.Support for turmeric is at 4725 below that could see a test of 4615. Resistance is now seen at 4963 above that could see a resistance of 5091.