Turmeric yesterday we have seen that market has moved -0.4% dropped due to mounting spot supplies and expectations of a bumper crop. Supply pressure is expected to continue till the end of April in the spot markets. Supplies rose to around 20,000 bags of 70 kg each from about 15,000 bags in the second week of March in Nizamabad. Output from Andhra Pradesh, the country'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. Higher production prospects and better stocks could however keep pressure on prices as markets trade with high volatility. 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. 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. In Nizamabad, a major spot market in AP, the price ended at 3666.65 rupees dropped by -95.25 rupees. Market has opened at 3950 & made a low of 3942 versus the day high of 4028. The total volume for the day was at 9035 lots and the open interest was at 22830.Support for turmeric is at 3931 below that could see a test of 3893. Resistance is now seen at 4017 above that could see a resistance of 4065.

Trading Ideas:

Turmeric trading range for the day is 3893-4065.

Turmeric dropped due to mounting spot supplies and expectations of a bumper crop.

Supply pressure is expected to continue till the end of April in the spot markets

NCDEX accredited warehouses turmeric stocks gained by 481 tonnes to 3666 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3666.65 rupees dropped by -95.25 rupees.