Turmeric continuous to rally towards north front and settled once again with a gain by +1.68% at 4276 on the news that acreage in India is likely to fall 30 percent this season, reducing exports in 2013/14 even though total overseas sales are still expected to be above average. There have been bumper crops of turmeric in the last two seasons as planting boomed after prices soared in 2010 due to lower output and dwindling stocks. Now, stocks have mounted and prices this year have slumped 30 percent for the 2011/12 crop. Turmeric takes nine months to mature so crop planted in June mostly shows up in exports for the next fiscal year. It is labor-intensive, needing to be boiled and it can take up to five-six days to dry out under the sun. Sowing starts by end-June and extends until August. India, which supplies 80 percent of global turmeric exports, sells mainly to the UAE, Malaysia, Japan and the US. Quantities, however, are small in comparison with India's 300k-400k tonnes annual consumption. Lower acreage sown from now will hit 2013/14 overseas sales even though they should stay above recent averages of 50,000 tonnes, three exporters and four. A slow start to the June-September monsoon rains means farmers with irrigation facilities have started sowing in some pockets but cultivators dependent on the monsoon are waiting for one or two spells of rains to commence sowing. At Nizamabad, a key market in Andhra Pradesh, turmeric was trading at 3,653 rupees per 100 kg, more than 50 percent below prices a year ago. For today's session market is looking to take support at 4167, a break below could see a test of 4031 and whereas resistance is now likely to be seen at 4393, a move above could see prices testing 4483.

TURMERIC

Turmeric trading range for the day is 4032-4484.

Turmeric jumped again more than 2% as market sentiments bullish on lower sowing.

Turmeric acreage is likely to fall nearly 30% which can reduce exports in 2013/14.

Slow monsoon could push back turmeric sowing, pushing up prices.

In Nizamabad, a major spot market in AP, the price ended at 3615.5 rupees dropped by -35.3 rupees.

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