Turmeric yesterday we have seen that market has moved 2.05% on rising demand from the domestic markets though higher arrivals from the fresh crop limited the upside. Good arrivals and higher crop prospect however have been pressurizing prices. Traders expect short term trend to remain volatile but any rise in demand could perk up prices that had fallen significantly over last few months due to high arrivals in the mandis. 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. 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. 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 3320.9 rupees dropped by -10.45 rupees. Market has opened at 3636 & made a low of 3624 versus the day high of 3710. The total volume for the day was at 10080 lots and the open interest was at 30085.Support for turmeric is at 3641 below that could see a test of 3589. Resistance is now seen at 3727 above that could see a resistance of 3761.

Trading Ideas:

Turmeric trading range for the day is 3587-3759.

Turmeric gained on rising demand from the domestic markets though higher arrivals from the fresh crop limited the upside

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

NCDEX accredited warehouses turmeric stocks gained by 12 tonnes to 4944 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3320.9 rupees dropped by -10.45 rupees.