Turmeric yesterday we have seen that market has moved 0.64% on some overseas demand but expectations of a bumper crop weighed on sentiment.
Supplies from the new season crop have started in the spot market in small quantities and are likely to improve in coming days. Around 7,000 bags of 70 kg each of Turmeric arrived at the Nizamabad market on Wednesday.
Traders expect higher production in 2012 due to increased area under the crop in key cultivating regions.
This year quality of turmeric stocks and less export demand are the factors which form the pull factors of turmeric prices, also pressure was seen due to a 25 per cent increase in turmeric area and an increased production of about 45 per cent, resulting in 70 lakh bags of 100 kg each, as against 48 lakh bags in 2009-10. Besides, there was a drop of 14 per cent in export.
Turmeric stock, which was seven lakh bags during 2009-10, has increased to 11 lakh bags in 2010-11.
In Tamil Nadu, turmeric area increased to 43,000 hectares. At the same time, its quality suffered due to rains during December 2010.
In Nizamabad, a major spot market in AP, the price ended at 4730.15 rupees dropped by -7.95 rupees. Market has opened at 4684 & made a low of 4662 versus the day high of 4750.
The total volume for the day was at 3985 lots and the open interest was at 10200.Support for Turmeric is at 4658 below that could see a test of 4616.
Resistance is now seen at 4746 above that could see a resistance of 4792.
Trading Ideas:
Turmeric trading range for the day is 4616-4792.
Turmeric ended up on some overseas demand but expectations of a bumper crop weighed on sentiment
This year quality of turmeric stocks and less export demand are the factors which form pull factors of prices
Around 7,000 bags of 70 kg each of turmeric arrived at the Nizamabad market.
In Nizamabad, a major spot market in AP, the price ended at 4730.15 rupees dropped by -7.95 rupees.
Courtesy: Kedia Commodities
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