Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 5 March 2012

Turmeric yesterday we have seen that market has moved 0.26% on some local demand but higher supplies in the domestic markets and estimates of a bumper crop restricted the gains. 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. According to Spices Board of India, exports of Turmeric during April 2011- December 2011 stood at 62,000 tonnes as compared to 37,400 tonnes in 2010-11, rise of 66%. Targets set by the Spices Board have already been met till October 2011. Exports have touched new historical levels in 2011-12. 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 4380.95 rupees dropped by -70.2 rupees. Market has opened at 4718 & made a low of 4670 versus the day high of 4754. The total volume for the day was at 5340 lots and the open interest was at 18660.Support for turmeric is at 4666 below that could see a test of 4626. Resistance is now seen at 4750 above that could see a resistance of 4794.