Turmeric settled up 1.98% at 4948 on some improvement in demand from northern part of the country, though large carry-forward stocks limited the upside. Demand from north India has picked up and is likely to stay firm in the short term. Local supplies would increase with the arrival of the new crop from February. Turmeric cultivation usually begins in the last week of May and continues until August. A lengthy harvesting process starts from January. The fresh arrivals of the commodity would start at the beginning of the next year and though the stocks are quite comfortable, buying seems to be supporting the commodity after the battering in the prices over last few months. The total carryover stocks of turmeric in major mandies were reported higher at 65 lakh bags up almost 11 lakh bags from the last year in the same period. The favorable weather conditions in major turmeric growing states like Andhra Pradesh and Karnataka will encourage the productivity of the turmeric crop in the current year. The market sources mentioned that strong recovery in the futures prices in previous trading has encouraged the strong stockiest to liquidate their stocks in the physical mandies. The total carryover stocks of turmeric in major mandies were reported higher at 65 lakh bags up almost 11 lakh bags from the last year in the same period. Technically market is under short covering as market has witnessed drop in open interest by -0.36% to settled at 15305 while prices up 96 rupee, now Turmeric is getting support at 4849 and below same could see a test of 4749 level, And resistance is now likely to be seen at 5009, a move above could see prices testing 5069.

Trading Ideas:

Turmeric trading range for the day is 4749-5069.

Turmeric ended up on some improvement in demand from northern part of the country, though large carry-forward stocks limited the upside.

Local supplies would increase with the arrival of the new crop from February.

NCDEX accredited warehouses turmeric stocks dropped by 603 tonnes to 4745 tonnes.