Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 10 October 2013

Turmeric yesterday settled down -0.59% at 5020 on the account of strong carryover stock in local mandies along with favourable rainfall in major areas of Andhra Pradesh. The total carryover stocks of turmeric in major mandies were reported higher at 67 lakh bags up almost 13 lakh bags from the last year in the same period. Therefore, stockiest have reported strong selling activity in local mandies. The prices were also daunted by favourable rainfall in major turmeric growing areas of Andhra Pradesh and Tamilnadu . This will encourage the better productivity of the crop in the current year. Traders are estimated total turmeric crop for the current year at 50 lakg bags against 48 lakh bags of the last year. As per market sources, timely rainfall in major turmeric producing states such as Maharashtra, Tamilnadu and Andhra Pradesh led to steady sowing progress of turmeric crop in the current season. In the state of Andhra Pradesh, turmeric sowing had completed in nearly 0.53 lakh hectare as on 11th September 2013 as against the normal area of 0.68 lakh hectare. The total ending stocks of turmeric estimated at 70 lakh bags against 55 lakh bags of last year in the same period. The market sources also added that the local mandies are currently having the sufficient carryover stocks of turmeric to meet entire domestic and export demand for the coming five months or before the commencement of new harvesting. The overall consumption of the turmeric for the next five months is estimated at 25 lakh bags. In Nizamabad, a major spot market in AP, the price ended at 5010 rupees gained 42 rupees. Now Turmeric is getting support at 4947 and below same could see a test of 4873 level, And resistance is now likely to be seen at 5121, a move above could see prices testing 5221.