Commodity Trading Tips for Turmeric by KediaCommodity

TurmericTurmeric yesterday we have seen that market has moved -1.4% as wholesale traders have high inventories and exporters wait for prices to stabilise before shipping. However, expectations that the area under turmeric cultivation would drop this year because of a sharp fall in prices restricted the losses. Turmeric is planted between June and August and the crop takes about nine months to harvest. Prices have slumped more than 30 percent since December due to a bumper output of 8.5 million to 8.8 million bags of 70 kg each in 2012, up from 6.9 million to 7 million bags the year before.Wholesale traders are not active in the market because they are well stocked. Prices may fall further on the progress of monsoon in the key cultivating regions. Turmeric prices are falling continuously and exporters are not shipping as they wait for prices to stabilise. India's monsoon rainfall was 36 percent below average in the week to June 6, the weather office said on Thursday, after the seasonal rains missed their usual arrival date of June 1 in south India.Reports indicate exports likely to pick up in the coming weeks as the present rates are considered low. In Nizamabad, a major spot market in AP, the price ended at 3489.4 rupees dropped by -37.05 rupees. Market has opened at 3696 & made a low of 3614 versus the day high of 3696. The total volume for the day was at 13140 lots and the open interest was at 36675.Support for turmeric is at 3616 below that could see a test of 3574. Resistance is now seen at 3698 above that could see a resistance of 3738.

Trading Ideas:

Turmeric trading range for the day is 3574-3738.

Turmeric fell as wholesale traders have high inventories and exporters wait for prices to stabilise before shipping

Turmeric is planted between June and August and the crop takes about nine months to harvest.

NCDEX accredited warehouses turmeric stocks gained by 20 tonnes to 7830 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3489.4 rupees dropped by -37.05 rupees.