Turmeric yesterday we have seen that market has moved 2.59% helped by lack of arrivals in the spot market.
Supplies from the new season crop have started in spot market in small quantities and are likely to improve in coming weeks.
Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce45 lakh bags of Turmeric a rise of 29% as compared to previous year.
Bumper crop of Turmeric this year and sufficient carryover stocks is keeping market sentiments bearish.
According to Spices Board of India, exports of Turmeric during April 2011- November 2011 stood at 58,000 tonnes as compared to 35500 tonnes in 2010-11, rise of 56%.
The new crop is expected by mid-February and traders are also reportedly waiting for the new crop arrivals for fresh demand.
Higher production prospects and better stocks could however keep pressure on the market sentiments as markets trade with high volatility.
In Nizamabad, a major spot market in AP, the price ended at 4727.5 rupees dropped by -2.65 rupees. Market has opened at 4710 & made a low of 4710 versus the day high of 4892. The total volume for the day was at 7105 lots and the open interest was at 11390.
Support for Turmeric is at 4725 below that could see a test of 4627. Resistance is now seen at 4907 above that could see a resistance of 4991.
Trading Ideas:
Turmeric trading range for the day is 4627-4991.
Turmeric ended with gains helped by lack of arrivals in the spot market
Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags
Bumper crop of Turmeric this year and sufficient carryover stocks is keeping pressure on prices.
In Nizamabad, a major spot market in AP, the price ended at 4727.5 rupees dropped by -2.65 rupees.
Courtesy: Kedia Commodities
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