Turmeric yesterday we have seen that market has moved 0.99% on concerns over weak rainfall and expectation of a drop in the sowing area in the major growing regions due to unattractive prices. Short term trend is likely to remain firm as reports of procurement by Tamil Nadu State Govt supported the rates and traders expect overall export and domestic demand to pick up in coming weeks. 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. Firmness in Spices over next few months cannot be ruled out with rising exports aided by strong Dollar and a pick up in domestic demand supporting the market sentiments further. A slow progress of rains could push back sowing operations, hurting the yield and the output. Turmeric is planted between June and August and takes about nine months to harvest. 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. India's monsoon rains were 49 percent below average in the week that ended on July 4, data from the weather office showed. In Nizamabad, a major spot market in AP, the price ended at 3952.35 rupees gained by
124.05 rupees. Market has opened at 4488 & made a low of 4386 versus the day high of 4564. The total volume for the day was at 26060 lots and the open interest was at 24850. Support for turmeric is at 4391 below that could see a test of 4299. Resistance is now seen at 4569 above that could see a resistance of 4655.

Trading Ideas:

Turmeric trading range for the day is 4300-4656.

Turmeric rose on concerns over weak rainfall and expectation of a drop in the sowing area

With arrivals slowing down and moderate rise in export and domestic demand being noted supporting rates

NCDEX accredited warehouses turmeric stocks gained by 198 tonnes to 9374 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3952.35 rupees gained by 124.05 rupees.