The turmeric futures showed a very volatile trend yesterday and ended down during the day on extended selling pressure on reports of rise in acreage under turmeric cultivation in the coming season.

Lack of buying interest at higher levels also resulted into fall in the prices.

The active July contact NCDEX turmeric futures tested an intraday low of Rs.14540 per quintal from a high of Rs.14900 per quintal and settled at Rs.14648 per quintal, down by 1.27%.

Outlook

The turmeric futures are expected to trade on a negative note during the day on extended selling pressure on hopes of higher acreage and poor demand at higher levels

The area under turmeric cultivation is likely to increase by 30% this year as the farmers are attracted by higher price of turmeric in recent months

The new harvesting will commence in April 2011

The carry-forward stocks are very less at around 7,000 tonnes, which is likely to limit the fall

The spot price is quoting at Rs.14500-14600 per quintal in Nizamabad market

According to Indian Spices Board, turmeric price in international market quoted at $4.96 per kg during the week ended 4th June against $1.87 per kg in the same period a year ago

Courtesy: Karvy Commtrade Ltd.

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