Turmeric settled up 0.66% at 5780 on hopes of improvement in local demand in the winter season, while excessive rains in Andhra Pradesh raised concerns about the quality of the crop. Supplies are still higher, but demand is sluggish from local and overseas buyers. Prices had been steady at lower levels off late as good buying emerged ahead of peak festivities. The fresh arrivals of the commodity would gain momentum from 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. As per the market sources, the new harvesting season of turmeric crop will begin from the end-December in some parts of Andhra Pradesh due to early plantation by farmers. The fresh arrivals of turmeric in Andhra Pradesh normally begins from mid- January. So anticipation of early harvesting of the new crop has propelled strong stockiest selling in local mandies. The market data suggested that total stocks of around 35-36 lakh bags have been reported in the major producing states. These stocks can easily meet the total consumption of the domestic market for the next two months, ie, around 8-10 lakh bags. With harvesting set to begin, any increased pressure of arrivals in mandis are likely to keep sentiments weak in the short term for the commodity. Technically market is under fresh buying as market has witnessed gain in open interest by 6.1% to settled at 8780 while prices up 38 rupee, now Turmeric is getting support at 5737 and below same could see a test of 5693 level, And resistance is now likely to be seen at 5823, a move above could see prices testing 5865.

Trading Ideas:

Turmeric trading range for the day is 5694-5866.

Turmeric gained on hopes of improvement in local demand in the winter season

Supplies are still higher, but demand is sluggish from local and overseas buyers.

NCDEX accredited warehouses turmeric stocks dropped by 308 tonnes to 3273 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5218.75 rupees remains unchanged at0 rupees.