Turmeric yesterday we have seen that market has moved -0.55% as mounting stocks and an improvement in local supplies offset concerns over lower crop. Supplies in the local market are increasing every week. Meanwhile, short term trend may remain volatile with an upward bias and a clear trend is expected in the medium term. Also, higher stocks kept pressure on the market sentiments to some extent. For long term, overall sentiments remain firm on lower production estimates and upcoming demand. Turmeric production in the South Indian states of Andhra Pradesh, Karnataka and Tamil Nadu is likely to be lower by 30-40% this year on poor rainfall. Turmeric arrivals in the Nizamabad mandi increased to 15,000 bags from 10,000 bags and arrivals in the Erode Mandi decreased to 4,000 bags from 7,000 bags. 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. Turmeric traders are eyeing some buoyancy in spot market in coming days. The crop size in Tamilnadu is expected to be lower and the arrivals are quite thin compared to the last year. 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 5437.5 rupees gained by 22.75 rupees. Market has opened at 6194 & made a low of 6096 versus the day high of 6206. The total volume for the day was at 11490 lots and the open interest was at 27220.Support for turmeric is at 6089 below that could see a test of 6037. Resistance is now seen at 6199 above that could see a resistance of 6257.

Trading Ideas:

Turmeric trading range for the day is 6037-6257.

Turmeric fell as mounting stocks and an improvement in local supplies offset concerns over lower crop.

Supplies in the local market are increasing every week.

Turmeric production in the South Indian states of A.P, Karnataka and Tamil Nadu is likely to be lower by 30-40% this year

In Nizamabad, a major spot market in AP, the price ended at 5437.5 rupees gained by 22.75 rupees.