MUMBAI (Commodity Online): Persisting output concern because of crop damages in the major growing regions enabled turmeric futures to remain at the upper circuit Friday. Higher demand and the lower stock position also underpinned the yellow spice.
NCDEX turmeric November futures touched the daily four percent upper circuit limit of the day at Rs 11,665 with the open interest added 1.61 percent, indicating fresh buying. The counter now quoted at Rs 11,465, up 2.21 percent from the last close.
Start trading in commodities from as low as $50. Join nowThe December futures gained nearly three percent to Rs 10,629 and now quoted at Rs 10,570, up 2.30 percent. The open interest in the counter dropped 0.75 percent, indicating short covering.
India's turmeric futures, which hit contract highs in the previous session, dropped on profit-taking prompted by higher margins and weak spot demand. The November turmeric futures closed down 2.8% at 11257 rupees per quintal.
The margin required for taking long position in turmeric contracts has risen again by additional 10%. Fundamentally, the spice is very strong on account of lower stocks coupled with strong demand.
Fresh arrivals for this spice will be slightly delayed this year and are expected to start from the month of February-March 2010. The crop is in growth stages in Srilanka and China. In Nizamabad, a major spot market in Andhra Pradesh, the price dropped 165 rupees at 11,763 rupees per 100 kg.
