Turmeric yesterday we have seen that market has moved -2.27% on ample supply from the fresh crop along with higher production concerns. With increased arrivals, selling pressure likely to continue in short term till exports pick up. 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 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. 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 the Nizamabad mandi arrivals stood at 30,000 bags and in the Erode mandi arrivals stood at 22,000 bags. In Nizamabad, a major spot market in AP, the price ended at 3761.9 rupees dropped by -180.95 rupees. Market has opened at 4310 & made a low of 4154 versus the day high of 4348. The total volume for the day was at 12705 lots and the open interest was at 21850.Support for turmeric is at 4133 below that could see a test of 4047. Resistance is now seen at 4327 above that could see a resistance of 4435.

Trading Ideas:

Turmeric trading range for the day is 4047-4435.

Turmeric declined on ample supply from the fresh crop along with higher production concerns

With increased arrivals, selling pressure likely to continue in short term till exports pick up

NCDEX accredited warehouses turmeric stocks gained by 50 tonnes to 2128 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3761.9 rupees dropped by -180.95 rupees.