Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 22 March 2013

Turmeric yesterday we have seen that market has moved 3.57% on some improvement in local buying amid inquiries from north India, though higher carry-forward stocks and rising supplies from the new season crop limited the gains. Some fresh demand has come from north Indian buyers. Traders expect a lower output because of reduced area of plantation in leading cultivating states. Around 12,000-15,000 bags of 70 kg each are expected to reach daily in Nizamabad as compared with 8,000-10,000 bags in the previous week. As per market sources, the total production of turmeric has been revised lower to 45 lakh bags for the current year from the previous estimates of 55 lakh bags. Moreover, total carryover stocks of the last year were also reported lower at 35 lakh bags at major mandies. India's turmeric production in 2012-13 is expected around 50 lakh bags. Production in Nizamabad is expected around 12 lakh bags. In 2011-12 the production is projected at historical high of 10.62 lakh tn. It is estimated that next year's carryover stocks would be around 10 lakh bags. Low rainfall activities in the Southern states of Andhra Pradesh, Karnataka and Tamil Nadu are likely to keep turmeric production lower by 30-40% this year. In Nizamabad, a major spot market in AP, the price ended at 6521.75 rupees gained by 119.65 rupees. Market has opened at 6614 & made a low of 6596 versus the day high of 6884. The total volume for the day was at 23290 lots and the open interest was at 18760. Support for turmeric is at 6672 below that could see a test of 6490. Resistance is now seen at 6960 above that could see a resistance of 7066.