Turmeric yesterday we have seen that market has moved 2.49% on fresh buying lead by weak production estimations. According to trade sources, turmeric production in 2012-13 is expected around 50-60 percent lower compared to last year's historical high of 90 lakh bags, because of decline in acreage and unfavorable climatic conditions. As per market sources, turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags. This is mainly due to fragile sowing in major producing states such as Andhra Pradesh and Maharashtra. Moreover, dearth of selling by cultivators and strong offtake by investors also propelled strong gains in turmeric market. Most of traders and stockiest are anticipating the hike in Minimum Support Price of turmeric to Rs 10,000 per quintal in 2013 due to higher cultivation cost. Low trading activities is observed in the main mandis of Andhra Pradesh due to local festival. Higher stocks in mandi may keep pressure on the market sentiments to some extent. In Nizamabad, a major spot market in AP, the price ended at 5692.85 rupees gained by 7.15 rupees. Market has opened at 6480 & made a low of 6422 versus the day high of 6666. The total volume for the day was at 17570 lots and the open interest was at 28525.Support for turmeric is at 6501 below that could see a test of 6339. Resistance is now seen at 6745 above that could see a resistance of 6827.

Trading Ideas:

Turmeric trading range for the day is 6339-6827.

Turmeric ended with gains on fresh buying lead by weak production estimations

Turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags

Moreover, dearth of selling by cultivators and strong offtake by investors also propelled strong gains in turmeric market

In Nizamabad, a major spot market in AP, the price ended at 5692.85 rupees gained by 7.15 rupees.