Turmeric ended flat as prospects of higher output and rising supplies in spot markets were offset by support from export demand.
Turmeric cultivation in India usually starts by the end of May and continues until August and a lengthy harvesting season begins in January. Some demand from North India was there.
The new crop is expected by mid-February and traders are also reportedly waiting for the new crop arrivals for fresh demand.
Traders feel present rates are very low even as expectations of higher production continuously weighed on the market sentiments.
Rising demand for good quality finger Turmeric is likely to support the trend across the spot markets.
Attractive exports are also adding to the upsurge in prices. Traders are expecting full fledged arrivals might start by February end.
Therefore, in medium to long term huge supply due to record high production estimates might weigh on prices.
According to traders, turmeric production estimates are around 80-82 lakh bags in coming arrival season.
In Nizamabad, a major spot market in AP, the price ended at 4812.05 rupees dropped by -30.05 rupees. Market has opened at 4562 & made a low of 4540 versus the day high of 4626.
The total volume for the day was at 2195 lots and the open interest was at 10405.Support for Turmeric is at 4538 below that could see a test of 4496. Resistance is now seen at 4624 above that could see a resistance of 4668.
Trading Ideas:
Turmeric trading range is 4496-4668.
Turmeric settled flat as prospects of higher output and rising supplies in spot markets weighed on prices
The new crop is expected by mid-February and traders are reportedly waiting for new crop arrivals for fresh demand
Rising demand for good quality finger Turmeric is likely to support the trend across the spot markets
In Nizamabad, a major spot market in AP, the price ended at 4812.05 rupees dropped by -30.05 rupees.
Courtesy: Kedia Commodities
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