Turmeric yesterday we have seen that market has moved 0.73% on continued short covering by the traders on the back of rising domestic demand. According to the market sources harvesting of Turmeric in Nizamabad is 75% complete, Erode 60%, Sangli 60% while centres of Duggiralla, Warangal and Cuddapah which started their harvesting late have completed 25% of their harvesting. 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%. Traders suggested that low prices of turmeric at major mandis against anticipation of strong domestic and export demand in the coming days might incite strong stockiest offtakes at lower levels. Moreover, possibility of shift in turmeric area towards other crops such as Maize and Paddy might also provide some supports to the prices at lower levels. Traders mentioned that poor prices of turmeric crop throughout the last year might shift the cultivator's interest towards other remunerative crop. Higher acreage from the high rates is stated the reason for the rise in expected production. In Nizamabad, a major spot market in AP, the price ended at 3280.7 rupees dropped by -9.55 rupees. Market has opened at 3590 & made a low of 3566 versus the day high of 3634. The total volume for the day was at 13505 lots and the open interest was at 29645.Support for turmeric is at 3563 below that could see a test of 3531. Resistance is now seen at 3631 above that could see a resistance of 3667.

Trading Ideas:

Turmeric trading range for the day is 3531-3667.

Turmeric gained on continued short covering by the traders on the back of rising domestic demand

Higher acreage from the high rates is stated the reason for the rise in expected production.

NCDEX accredited warehouses turmeric stocks gained by 90 tonnes to 4713 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3280.7 rupees dropped by -9.55 rupees.