Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 10 December 2013

Turmeric settled up 1.73% at 5882 as concerns about the quality of the crop due to unfavourable weather in Andhra Pradesh supported prices. However, with harvesting set to begin, any increased pressure of arrivals in mandis are likely to keep sentiments weak. The arrival has increased to 4,200 bags, but the sales were very poor with 40-45 per cent, as there was no heavy demand from upcountry traders. Only one or two orders were received by some turmeric exporters. India's total turmeric exports in April-September 2013 increased 2 percent to 38500 tonnes from 37736 tonnes same period a year ago, data released by the Spices Board of India showed. As per the latest report from IMD, rain/thundershowers would occur at many places over coastal Tamil Nadu and Andhra Pradesh and isolated places over rest Tamil Nadu during next few days and increase thereafter. Reports of good demand for hybrid finger variety are supportive for prices. Excessive rains in Andhra Pradesh, the leading producer of turmeric have raised concerns over the quality of the forthcoming crop. 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. These stocks can easily meet the total consumption of the domestic market for the next two months, ie, around 8-10 lakh bags. In Nizamabad, a major spot market in AP, the price ended at 5206.25 rupees dropped -12.5 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 5.08% to settled at 9205 while prices up 100 rupee, now Turmeric is getting support at 5780 and below same could see a test of 5678 level, And resistance is now likely to be seen at 5940, a move above could see prices testing 5998.