Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 18 April 2013

Turmeric yesterday we have seen that market has moved -3.98% weighed by a rise in daily arrivals and higher carry-forward stocks. Daily arrivals rose to 18,000 bags of 70 kg each at the Nizamabad market in Andhra Pradesh on Wednesday, from around 10,000 bags in the first week of the month. Supplies have risen since the beginning of this week and this is adding pressure on the market. Traders expect prices to rebound once arrival pressure eases due to estimates of lower production. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. Expectations are that production may be lower by 40-50%. There are reports of some crop damage in Erode region. Turmeric production in 2012-13 is expected around 45 lakh bags. Demand from North India is likely to support the prices in coming weeks as traders expect improved trading activities in the mandis. Further uptrend is likely for the commodity from a medium term point of view as lower production prospects and improved demand kept supporting the market sentiments. With lower production expected this year, sentiments are likely to remain positive in the near term once demand for the new crop starts picking up. In Nizamabad, a major spot market in AP, the price ended at 6792 rupees dropped by -191.3 rupees. Market has opened at 6926 & made a low of 6764 versus the day high of 6926. The total volume for the day was at 22790 lots and the open interest was at 21355.Support for turmeric is at 6710 below that could see a test of 6656. Resistance is now seen at 6872 above that could see a resistance of 6980.