Turmeric yesterday we have seen that market has moved 4.01% on the heels of waning sowing progress in major producing states along with strong stockiest demand. Traders mentioned that fragile sowing progress in major producing states such as Andhra Pradesh, Maharashtra and Karnataka prompted strong gains in turmeric market. The total sowing acreage of these states are likely to decline by almost 40-50% due to poor rainfall situation. Therefore, traders are expecting the total production in the range of 45-50 lakh bags in the current year against 80-82 lakh bags that was reported last year. Moreover, strong demand of stockiest and exporters at lower levels also added strong gains in turmeric market. Currently, most of the traders and stockiest are busy in procuring the turmeric from physical market as prices were shrugged off by almost 50% in the last one year on the account of bumper production in the last year. According to Spices Board of India, exports of Turmeric during April 2011- March 2012 hit a record high of 79,500 ton. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags in 2010- 11. Reports that the farmers may shift to other lucrative crops have also supported prices at lower levels. In Nizamabad, a major spot market in AP, the price ended at 4155.85 rupees gained by 203.5 rupees. Market has opened at 4498 & made a low of 4498 versus the day high of 4664. The total volume for the day was at 13165 lots and the open interest was at 26935. Support for turmeric is at 4553 below that could see a test of 4443. Resistance is now seen at 4719 above that could see a resistance of 4775.

Trading Ideas:

Turmeric trading range for the day is 4443-4775.

Turmeric ended higher on the heels of waning sowing progress in major producing states along with strong stockiest demand

Fragile sowing progress in major producing states prompted strong gains in turmeric market

NCDEX accredited warehouses turmeric stocks gained by 50 tonnes to 9424 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 4155.85 rupees gained by 203.5 rupees.