Turmeric yesterday we have seen that market has moved -0.6% as higher domestic supplies at the Erode spot market and expectations of a bumper crop weighed on sentiment. Turmeric auctions have been cancelled at the Nizamabad market in Andhra Pradesh in the week to March 24 due to an excess supply of the fresh crop. Daily arrivals have touched about 22,000 bags of 70 kg each at the Erode market in Tamil Nadu, and are expected to rise further. Turmeric output in 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. Demand from the overseas and domestic buyers remained lower lending support to the bears in the market. Arrivals in Erode mandi are already witnessing high arrivals of 29000 bags daily. This figure is expected to soar further in the coming weeks owing to bumper production of the spice this season. Exports of Turmeric during April to December 2011 rose 66% to 62,000 tonnes as compared to 37,400 tonnes in the same period previous year. The total production of turmeric in the current year is likely at 90 lakh bags against 70 lakh bags that were reported last year in the same period. In Nizamabad, a major spot market in AP, the price ended at 3942.85 rupees gained by 2.4 rupees. Market has opened at 4320 & made a low of 4240 versus the day high of 4374. The total volume for the day was at 14315 lots and the open interest was at 19385.Support for turmeric is at 4231 below that could see a test of 4169. Resistance is now seen at 4365 above that could see a resistance of 4437.

Trading Ideas:

Turmeric trading range for the day is 4169-4437.

Turmeric fell as higher domestic supplies at Erode spot market and expectations of bumper crop weighed

Turmeric auctions have been cancelled at Nizamabad market in week to March 24 due to an excess supply of fresh crop

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 2078 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3942.85 rupees gained by 2.4 rupees.