Fundamental Analysis
Spot prices at the domestic mandis are being quoted at steady rates tracking Turmeric futures. Farmers in the domestic markets are not ready to sell turmeric at lower levels. This is supporting the prices in the short term.
Turmeric futures after making a low of Rs.5,090/qtl are trading in range of Rs.5,120- 5,250/qtl. If, prices trade below support level of Rs.5,090/qtl prices may witness selling.
Better advancement of monsoon to the interior parts of the nation may cap the upside in the turmeric prices at the domestic market and the impact may be witnessed in futures by mid of July.
Sowing of turmeric is expected to grow due to better prices earned in the current year. This may pressurize the prices in long term (end of August 2009). The other factor which may determine the prices during the above mentioned period would be the fresh orders from the domestic market ahead of festive season.
Technical Analysis
Turmeric prices (NCDEX August 09 Contract) closed at Rs.5,233/qtl higher than Tuesday’s close of Rs. 5,190/qtl.
Outlook
Turmeric prices in the intraday may trade in rangebound manner as there are no clear fundamentals to drive the prices. In the long term prices may take cues from the stocks of turmeric with stockists and demand from the domestic and overseas market.
Courtesy: Angel Commodities
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