MCX
+22.62
NCDEX
0
Fundamental Analysis
Benchmark spot prices are being quoted at steady rates due to regular offtakes at the domestic market. Overseas buyers are expected to place fresh orders by the mid of October as the prices are quoting at competitive rates. The prices are expected to strengthen if demand in good quantity is placed.
Turmeric Futures December contract broke the crucial support of 3800. Prices may trade in sideways to down manner in the coming weeks.
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 by the mid of October 2008.
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 3740 down by Rs.64/quintal as compared to Wednesday’s close of 3805.
Prices closed below its 10-Day and its 20-Day EMA. RSI is at 37.9 and is in neutral zone.
Prices are likely to trade in sideways to down manner for the intraday.
Outlook
Slow trades at the domestic market may keep Turmeric Futures sideways to down for 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
