Turmeric yesterday we have seen that market has moved -1.56% on imposition of additional margin by the exchange. Turmeric acreage in India, the world's biggest producer and exporter of the yellow spice, 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. Turmeric arrivals in the Nizamabad mandi were steady at 4,000 bags. The arrivals in the Erode mandi jumped to 6,000 bags from 5,000 bags. NCDEX imposed additional Margin of 20% (in cash) on both the Long side and Short side on all running contracts and yet to be launched contracts in Turmeric with effect from beginning of day Friday, July 06, 2012. Turmeric acreage in India, the world's biggest producer and exporter of the yellow spice, 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. With arrivals slowing down and moderate rise in export and domestic demand being noted, this could support the rates in the short to medium term. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags in 2010-11. In Nizamabad, a major spot market in AP, the price ended at 3729.3 rupees gained by 25.05 rupees. Market has opened at 4210 & made a low of
4132 versus the day high of 4244. The total volume for the day was at 17530 lots and the open interest was at 28905. Support for turmeric is at 4123 below that could see a test of 4071. Resistance is now seen at 4235 above that could see a resistance of 4295.

Trading Ideas:

Turmeric trading range for the day is 4071-4295.

Turmeric ended with losses on imposition of additional margin by the exchange.

NCDEX imposed additional Margin of 20% on both the Long side and Short side on all running contracts wef July 06, 2012

NCDEX accredited warehouses turmeric stocks gained by 80 tonnes to 9136 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3729.3 rupees gained by 25.05 rupees.