Turmeric yesterday we have seen that market has moved -2.15% due to higher stocks from the producing regions amid subdued spot demand. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags in 2010-11. Erode is expected to produce 55 lakh bags of Turmeric a rise of 29% as compared to previous year. Demand is unlikely to sustain at higher prices because stocks are high. A decline in supplies could support prices to some extent, but any sharp rise is unlikely. Turmeric output in 2012 has risen as farmers expanded area under cultivation lured by higher prices. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags in 2010-11. Erode is expected to produce 55 lakh bags of Turmeric a rise of 29% as compared to previous year. Good arrivals and higher crop prospect have been pressurizing prices. Traders expect short term trend to remain volatile but any rise in demand could perk up prices that had fallen significantly over last few months due to high arrivals in the mandis. In Nizamabad, a major spot market in AP, the price ended at 3638.65 rupees dropped by -48.05 rupees. Market has opened at 3796 & made a low of 3702 versus the day high of 3796. The total volume for the day was at 10310 lots and the open interest was at 28015. Support for turmeric is at 3687 below that could see a test of 3647. Resistance is now seen at 3781 above that could see a resistance of 3835.

Trading Ideas:

Turmeric trading range for the day is 3647-3835.

Turmeric remained lower due to higher stocks from the producing regions amid subdued spot demand.

Erode is expected to produce 55 lakh bags of Turmeric a rise of 29% as compared to previous year.

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 6826 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3638.65 rupees dropped by -48.05 rupees.