Turmeric yesterday we have seen that market has moved -1.55% as ample supply in the spot markets weighed on prices. 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. 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 production for the year 2011-12 is projected at historical high of 82 lakh bags 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. In Nizamabad, a major spot market in AP, the price ended at 3942.85 rupees gained by 2.4 rupees. Market has opened at 4410 & made a low of 4300 versus the day high of 4430. The total volume for the day was at 9505 lots and the open interest was at 19895.Support for turmeric is at 4266 below that could see a test of 4218. Resistance is now seen at 4396 above that could see a resistance of 4478.

Trading Ideas:

Turmeric trading range for the day is 4219-4479.

Turmeric ended weak as ample supply in the spot markets weighed on prices

Turmeric output in AP is likely to rise 36% on year to 83,000 tonnes in 2012 due to an expansion in acreage

Turmeric production for year 2011-12 is projected at historical high of 82 lakh bags compared to 69 lakh bags in 2010- 11

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