Turmeric arrivals diminish in local mandis
Published on November 30, 2009 12:42:44 IST
Fundamental Analysis Spot prices at the major mandis were quoted at higher rates tracking turmeric futures. Lower arrivals at the domestic mandis are supporting the prices to surge.
Better crop estimates of turmeric may however control the prices from going sharply higher.
Prices at the futures may depend now on the crop prospects of turmeric. Further, in the short term (till November) prices may depend on the demand from the overseas and domestic market.
Other factor which may rule the prices in short term is the lower carryover stocks till the fresh crop arrivals in the months of February 2010.
According to the earlier estimates turmeric production is expected to be better at around 53 lakh bags. This may dampen the prices in the long term (December).
Technical Analysis
Turmeric prices (NCDEX December 09 Contract) closed at Rs.10,281/qtl higher than Thursday’s close of Rs. 9,885/qtl.
RSI is at 51 and is trading in the sideways to up manner.
Outlook
Turmeric prices in the intraday may witness sideways to up movement due to lower arrivals at domestic mandis. In the long to medium term (December onwards) term prices may take cues from the turmeric production for the year 2010 and demand from the domestic and overseas market.
Courtesy: Angel Commodities Want to get Futures prices on your mobile? Click here
