Turmeric Oct futures in NCDEX ended steady in volatile trade on Thursday as higher output estimates offset the bullish sentiments created by a likely rise in festive demand, In Nizamabad, a key spot market in Andhra Pradesh, there is not much of trading activities seen, exporters are “wait and see “mode to buy at lower levels, the price was steady at 3,872 rupees per 100 kg.
The spot prices are closed steady but mild fall in future prices are hopes higher output on major growing states, have received good rains in Aug-Sept, data with the India Meteorological Department showed, Acreage under the spice is almost steady.
Turmeric arrivals in Nizamabad spot market dropped by 16.8 percent to 50,317 tonnes in first eight months of 2008 compared to the same period a year ago, Nizamabad is the main spot market for the commodity in the southern state of Andhra Pradesh, India's biggest producer. The market received 60,482 tonnes of the spice in the same period last year, Nizamabad Agricultural Produce Marketing Committee, said.
Influencing Factors: Steady spot market
Profit booking
Excepting higher output
Lower domestic demand
Sufficient rain fall in major growing regions
Turmeric arrivals in Nizamabad spot market dropped
Decreasing exchange stocks
Weaker rupee may promote exports
A 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
Turmeric cultivation starts with the arrival of monsoon rains in June in southern and western states, the major producers.
Technical Outlook Technically Turmeric October. Closed above 9 day EMA and 21 day EMA.
Today’s Recommendation NCDEX Turmeric Oct above 3810 stop loss below 3750 Targets 3846, 3892, 3945
Courtesy: JRG Wealth Management
