MUMBAI (Commodity Online): Turmeric maintained the upside momentum. Reports of impositions of additional margin of 10% on buy side w.e.f Nov 4, 2009 by NCDEX did not have any bearish impact on the price for Turmeric as it maintained its uptrend. There are expectations however of some profit booking at these high levels.
Crop damage concerns due to rains in Southern statees of Karnataka and Andhra Pradesh continued. There are expectations of profit booking at the higher levels but strong underlying fundamental factors of crop damage is preventing any major fall in rates.
Prospects of rains in growing areas in AP can be beneficial for the crop and rains there can have temporary short term bearish impact on the prices
Trading platform that even a 5 year old can trade. Join now Late revival of monsoon in growing areas like AP and TN had earlier brightened prospects of improved crop productivity which had been adversely affected by drought like situation the previous months.
But lower stocks and good domestic and export demand are likely to support the prices. Reports of lower crop estimates and lower carryover stock can support the prices in the medium term.
As per the latest data released by Spice board of India, Turmeric exports are estimated to rise to 25500 tons during the period Apr-Aug, 2009 from 24875 tons same period last year
Courtesy: Religare Commodities
