Turmeric yesterday we have seen that market has moved 1.27% due to overseas demand for the new season crop, though estimates of higher output and expectations that fresh supplies would increase in the coming days restricted the gains.
Demand is good from the exporters. Supplies in the spot market are in proportion to the demand. Around 5,000-6,000 bags from the new season crop arrived in the Nizamabad market on Tuesday.
Supplies from the new season crop have started coming in the spot market in small quantities and are likely to improve in coming days.
Turmeric cultivation in India usually starts by the end of May and continues until August and a lengthy harvesting season begins in January.
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.
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 4707.45 rupees dropped by -104.6 rupees. Market has opened at 4600 & made a low of 4570 versus the day high of 4640.
The total volume for the day was at 3295 lots and the open interest was at 10205.
Support for Turmeric is at 4585 below that could see a test of 4543. Resistance is now seen at 4655 above that could see a resistance of 4683.
Trading Ideas:
Turmeric trading range is 4543-4683.
Turmeric ended up due to overseas demand for the new season crop
The new crop is expected by mid-February and traders are waiting for new crop arrivals for fresh demand
Higher production prospects and better stocks could however keep pressure on the market sentiments
In Nizamabad, a major spot market in AP, the price ended at 4707.45 rupees dropped by -104.6 rupees.
Courtesy: Kedia Commodities
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