Turmeric futures prices witnessed very choppy trade during Tuesday’s trading session.
Rising demand of fresh crop is keeping sentiments on positive side across the spot markets and therefore, farmers are also holding back old crop.
However, futures prices didn’t react to it and traded range bound to down.
Outlook
Turmeric prices are expected trade positive in rising upcountry demand across the spot markets. Arrivals in last 2-3 days have shown a significant fall as farmers are holding back old. Therefore, on cues from spot market activity futures might also resume uptrend on buying at lower levels.
Traders are buying good amount of fresh crop as they have to process and dispatch it to Gujarat and Kolkata
Exporters are also buying good amount of fresh crop in anticipation of rise in demand
Prices of fresh crop are now quoting in the range of Rs.2700-4288 per quintal with highest prices quoted around Rs. 4899 per quintal at Erode market
Arrivals as Erode market reported around 4200 bags against 5000 bags (1 bag=70Kg.) including 80% of fresh arrivals
According to derivative analysis, prices, volumes and open interest have declined. It indicates that traders have liquidated all their positions and it might create fresh buying opportunity at lower levels
Courtesy: Karvy Commtrade Ltd.
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