Turmeric yesterday we have seen that market has moved -1.43% on higher arrivals from the fresh crop along with poor spot demand. Good arrivals and higher crop prospect 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. 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. High moisture content in the current crop kept demand low and thus kept pressure on the market prices. With an expected 5-6 lakh bags of old stocks with farmers, there are expectations of higher arrivals of these stocks in the markets before new crop arrivals. In Nizamabad, a major spot market in AP, the price ended at 3708.65 rupees dropped by -38.2 rupees. Market has opened at 3896 & made a low of 3826 versus the day high of 3920. The total volume for the day was at 14015 lots and the open interest was at 28360. Support for turmeric is at 3820 below that could see a test of 3776. Resistance is now seen at 3914 above that could see a resistance of 3964.

Trading Ideas:

Turmeric trading range for the day is 3776-3964.

Turmeric remained lower on higher arrivals from the fresh crop along with poor spot demand.

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

The total production this year is expected to touch 75-85 lakh bags higher than the 65-70 lakh bags in 2010-11

In Nizamabad, a major spot market in AP, the price ended at 3708.65 rupees dropped by -38.2 rupees.