Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 16 April 2013

Turmeric yesterday we have seen that market has moved 4.03% tracking bullish cues from the spot market where demand from North Indian buyers was good while estimates of lower output also aided the upside. Daily supplies at the Nizamabad market, are around 10,000 bags (70 kg each) whereas demand is of around 15,000 bags. Spot traders expect turmeric prices to stay firm in the short-term as demand is expected to rise in the wedding season. The wedding season has begun in India and will continue till early June. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. If monsoon is delayed or is below the normal levels, then turmeric prices may reach a high of Rs. 10,000/quintal by this year. Overall production for this season is likely to fall to 40 to 50 lakh bags against last year's 90 lakh bags. Total expected stocks of turmeric across the country by the end of the season is deemed to be around 3.5-3.8 lakh tons. India consumes on an average 3.8-4 lakh tons per year. India exported 66,550 tons of turmeric in between January - April 2013 period. Demand from North India is likely to support the prices in coming weeks as traders expect improved trading activities in the mandis. In Nizamabad, a major spot market in AP, the price ended at 7023 rupees gained by 215.85 rupees. Market has opened at 7070 & made a low of 6978 versus the day high of 7336. The total volume for the day was at 27265 lots and the open interest was at 24330. Support for turmeric is at 7097 below that could see a test of 6859. Resistance is now seen at 7455 above that could see a resistance of 7575.