Turmeric yesterday we have seen that market has moved 2.02% on short covering at the weakened though gains were limited due to mounting domestic spot supplies from the new season crop and expectations of a bumper crop. Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce 45 lakh bags of Turmeric a rise of 29% as compared to previous year. 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. The arrivals in the Nizamabad mandi stood steady at 13,000 bags. The arrivals in the Erode mandi jumped to 18,000 bags from 15,000 bags. Higher production prospects and better stocks could however keep pressure on prices as markets trade with high volatility. 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. In Nizamabad, a major spot market in AP, the price ended at 3994.05 rupees dropped by -40.35 rupees. Market has opened at 4270 & made a low of 4266 versus the day high of 4370. The total volume for the day was at 8885 lots and the open interest was at 21145.Support for turmeric is at 4283 below that could see a test of 4223. Resistance is now seen at 4387 above that could see a resistance of 4431.

Trading Ideas:

Turmeric trading range for the day is 4225-4433.

Turmeric prices ended with gains on short covering though gains were limited due to mounting domestic spot supplies

Erode is expected to produce 45 lakh bags of Turmeric a rise of 29% as compared to previous year

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak

In Nizamabad, a major spot market in AP, the price ended at 3994.05 rupees dropped by -40.35 rupees.