Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 17 May 2013

Turmeric yesterday we have seen that market has moved 4% due to a drop in daily supplies and some overseas inquiries. Supplies have dropped and are expected to be in this range in the short-term. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. Demand from North India is yet to pick up and that is preventing prices from rising. Delayed arrival of Monsoon could have adverse implications on the overall rains in the Southern states which have been receiving less rains over last few years. Turmeric arrivals slumped to 7,000-8,000 bags in Nizamabad, from 15,000-20,000 bags in the previous week. Meanwhile, arrivals had fallen to 3,500-4,000 bags from 7000-8000 bags in the Erode markets in the prior weeks. Weak arrivals due to low crop during the current year amid bargain buying is likely to support the up trend in the turmeric prices. Indian exports had gradually picked up from an average of 48000-50000 tons to over 65000-79500 tons in the last two years. 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. In Nizamabad, a major spot market in AP, the price ended at 5947.8 rupees gained by 5.8 rupees. Market has opened at 5826 & made a low of 5766 versus the day high of 6026. The total volume for the day was at 20010 lots and the open interest was at 23970.Support for turmeric is at 5853 below that could see a test of 5679. Resistance is now seen at 6113 above that could see a resistance of 6199.