Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 25 October 2013

Turmeric yesterday settled down -0.82% at 4862 as higher stocks in the market and a weak trend at spot and overseas markets weighed on prices. Turmeric prices should improve from these levels as local and export demand are expected to pick up. Turmeric cultivation usually starts in the last week of May and continues until August. A lengthy harvesting process starts from January. There was some fresh export demand for turmeric at lower prices, which could increase if prices stabilise around those levels. As per market sources, the export demand remained buoyant in spot market due to strong offtake by exporters in Erode and Nanded mandies. The overall arrivals were remained thin at around 1500 bags against 2000-2500 bags reported earlier. The prices in both spot and futures markets will also garner some buying due to weak production estimates for the current year. The market data suggested that the total production of turmeric for the current year is estimated at 60 lakh bags against 75 lakh bags that were reported in the previous year. The major decline is production is mainly due to poor prices of turmeric throughout the marketing season. The total carryover stocks of turmeric in major mandies were reported higher at 65 lakh bags as on 11th October 2013, up almost 11 lakh bags from the last year in the same period. In Nizamabad, a major spot market in AP, the price ended at 4910 rupees gained 6 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -4.3% to settled at 13145 while prices down -40 rupee, now Turmeric is getting support at 4794 and below same could see a test of 4726 level, And resistance is now likely to be seen at 4940, a move above could see prices testing 5018.