Commodity Trading Tips for Turmeric by KediaCommodity

TurmericTurmeric settled down -0.04% at 5700 on mounting stocks and weak exports as buyers were waiting for supplies from the new season crop. Carryover stocks from the previous crop are high and supplies from the new crop would start in January and end-February. Excessive rains in Andhra Pradesh, the top turmeric cultivating state, have raised concerns over the quality of the crop. 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. Sources have reported heavy selling in both spot and futures market due to strong stock position in local mandies. The market sources suggested that total stocks of around 40-42 lakh bags of stocks have been reported in the major producing states. These stocks can easily meet the total consumption of the domestic market for the next three months, ie, around 12-14 lakh bags. The prices were also dampened by fragile export demand at higher levels. After a long time, turmeric exporters and traders have received a few orders from North India. Also, farmers brought quality turmeric. In Nizamabad, a major spot market in AP, the price ended at 5361.9 rupees remains unchanged at0 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 6.72% to settled at 8100 while prices down -2 rupee, now Turmeric is getting support at 5626 and below same could see a test of 5552 level, And resistance is now likely to be seen at 5790, a move above could see prices testing 5880.

Trading Ideas:

Turmeric trading range for the day is 5553-5881.

Turmeric settled flat on mounting stocks and weak exports as buyers were waiting for supplies from the new season crop.

Carryover stocks from the previous crop are high and supplies from the new crop would start in January and end-February.

Excessive rains in Andhra Pradesh, the top turmeric cultivating state, have raised concerns over the quality of the crop.

In Nizamabad, a major spot market in AP, the price ended at 5361.9 rupees remains unchanged at0 rupees.