Fundamental Analysis Benchmark Spot prices of Turmeric at the major mandis are being quoted at steady to slightly firm rates due to lower stocks at the domestic market and improved offtakes. Overseas buyers are remaining quiet due to high volatility at the Futures.
Turmeric Futures December contract after making a high of 3958 declined on account of profit booking by the market participants. If, prices trade below 3820 prices may touch 3750 and thereafter 3720 in the coming days.
Due to lower production of Turmeric for the year 2008 stocks of Turmeric with the stockists at domestic market stands at lower levels. This will support the prices once the demand from overseas market is placed in good quantity.
In the long term (Dec end to Mar 2009) prices may take cues from the estimates of the production for the year 2009.
Technical Analysis Turmeric prices (NCDEX Dec 08 Contract) closed at 3851 down by Rs.4/quintal as compared to Wednesday’s close of 3855.
Prices closed above its 10-Day and its 20-Day EMA. RSI is at 64.4 and is moving in sideways manner.
Prices are likely to trade in sideways manner for the intraday.
Outlook Profit booking by the market participants may keep Turmeric prices sideways to down in the intraday. Good rains in the Erode belt has lead to better production of Turmeric in 2009. This is likely to play an important role in determining the prices in the long term (Dec 2008-Mar 2009).
Courtesy: Angel Commodities
