MUMBAI (Commodity Online): Turmeric futures at India’s National Commodity and Derivatives Exchange (NCDEX) rose sharply on Monday trading in view of festive season demand, and news that farmers in major turmeric growing regions are forming a cartel to fix minimum sale price at Rs 10,000 per quintal as against prevailing Rs 5000 /quintal levels.
In noon trade, most active December contract rose 2.75% to Rs 5298 per 100 kg before falling to Rs 5270, November contract has risen 0.70% to Rs 5430, May rose 2.26% to Rs 5700, April 2.64% to Rs 5670 per 100 kg.
“In technical charts, MACD is in negative territory by RSI is bullish suggesting further moves ahead while prices are moving towards 14 day moving average suggestive of a positive bias and moving towards overbought conditions,” according to Sreekumar Raghavan, Chief Commodity Strategist at Commodity Online.
Support levels for Turmeric December are: 5182,5156, resistance 5400, 5354 for the near term. Turmeric production for 2012 has been projected at 90 lakh bags (1bag=70 kg) compared with 70 lakh bags in 2011. Turmeric arrivals in Erode and Nizamabad were around 10000 bags and 1000 bags (1bag=70kg) respectively. The spot price for the spice traded at Rs.5100-5500 per 100kg. Nizamabad and Erode market will be closed from Monday to Wednesday for Diwali holiday
Good demand from North India is expected to support prices. However, large stocks may pressurize prices.