Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 2 May 2013

Turmeric yesterday we have seen that market has moved 0.43% on estimates of lower output though new season supplies and higher stocks restricted the upside. Demand has improved from local buyers. Estimates of lower output are supporting buying in turmeric futures. Daily arrivals have risen to 18,000-22,000 bags of 70 kg each at the Nizamabad market from around 10,000 bags in the first week of the month. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. 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. 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 6463.3 rupees gained by 47.4 rupees. Market has opened at 6528 & made a low of 6468 versus the day high of 6596. The total volume for the day was at 7475 lots and the open interest was at 18405.Support for turmeric is at 6468 below that could see a test of 6404. Resistance is now seen at 6596 above that could see a resistance of 6660.