Turmeric futures traded on a positive note during Wednesday’s trading session due bargain buying on the exchange.

The fundamental factors of higher spot rate and steady export demand also supported the rise in prices.

The spot rate at Nizamabad has gained by Rs 100 to RS 9,600 per quintal on Wednesday.

The most active NCDEX April contract upon a higher opening at 8842 levels, made an intraday high of 9183 levels, lower than the previous session’s high of 9492 levels.

It made an intraday low at 8803 levels and settled the day at 9183 levels, upon hitting the 4% upper circuit for the day.

Outlook

Turmeric futures are expected to maintain its uptrend for the day taking cues from higher spot rates and good demand. However, profit taking might limit the gains.

Both domestic and export demand are supportive for rise in prices

Crop expectations for 2010 are higher by 30% as compared to previous year to 3.85 lakh tonnes but lower carry –forward stocks have led to overall apprehensions of tight supply upon the end of arrival season

The spot rate at the major market of Nizamabad has gone up by Rs 100 per quintal to Rs 9,600 per quintal while the spot rate at Erode has gone by Rs 300 to Rs 10,800 per quintal on Wednesday
Arrivals has been lower around 8000 bags to Nizamabad while higher around 16000 bags at Erode on Wednesday (1 bag = 70 kg)

For NCDEX April contract volume has gone down by 42.48% while open interest has gone up by 0.37% on Wednesday, which indicates a turn to lower side

Courtesy: Karvy Commtrade Ltd.

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