Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 2 June 2014

Turmeric settled up 1.53% at 6382 amid rising export demand in the spot market. Besides, a decline in supplies from producing regions against limited stocks position in the physical market too influenced the prices. Spot turmeric prices decreased further in Erode markets on the back of poor quality arrivals. Over half of the 2,600 bags that arrived found no takers. Because of the downward spiral in prices, farmers brought only 2,600 bags. Of this, only 45 per cent was sold. A major portion was bought by stockists. Traders purchased limited stock as they have not yet received reasonable demand from North India. On Friday, due to arrival of poor quality hybrid finger turmeric, the price decreased by Rs. 400 a quintal. The market projected that the total production of turmeric in the current year is estimated at 52 lakh bags against 70 lakh bags that were estimated in the last year. The sources added that poor rainfall in Erode during the sowing period will reduce the total production of the turmeric crop in the current year. India exported turmeric of 50,500 tonnes for Rs. 408.28 crore during the period April to November 2013, jumped 11% and 41% respectively in volume and value of exports over the same period last year. In Nizamabad, a major spot market in AP, the price ended at 5936.95 rupees gained 109.7 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 21.59% to settled at 4815 while prices up 96 rupee, now Turmeric is getting support at 6278 and below same could see a test of 6174 level, And resistance is now likely to be seen at 6448, a move above could see prices testing 6514.