Turmeric futures in NCDEX touched a new contract high yesterday and closed up on lower rain fall in main growing areas. Estimated decline in out put in current season also added strength. According to the reports, turmeric output is estimated to be at 7.5 lakh tonnes in the current season against 8.9 lakh tonnes a year ago. In Nizamabad spot market turmeric closed at Rs 4208.45, up Rs 28.3. Farmers and stockists were holding back their stocks due to the expectation of higher prices

Hopes of better returns from exports after the depreciation of the Rupee against the dollar supported turmeric prices.

Influencing Factors: Turmeric

• Lower rain fall in main growing areas
• Estimated lower crop in current season
• Expectation of higher acreage due to higher price
• Monsoon
• Traders estimate turmeric output in 2008 to fall to 4.2 million bags of 70 kg each from 5.4 million bags a year ago
• The export demand, which normally picks up during August-September period, have started coming in May itself due to anticipated lower production

Technical Outlook

Technically Turmeric August closed above 9 day EMA and 21 day EMA.

Today’s Recommendation

NCDEX Turmeric August sell 4540-45 stop loss above 4560 Targets 4525, 4502, 4482