MUMBAI (Commodity Online): Turmeric futures expected to trade down on Wednesday due to higher supply from the fresh crop amid estimates of higher production from the new crop.
The new crop is expected by mid-February and traders are also reportedly waiting for the new crop arrivals for fresh demand. Traders feel present rates are very low even as expectations of higher production continuously weighed on the market sentiments.
In NCDEX turmeric April contract on Tuesday closed lower by 1.20% at Rs.4,590 per quintal against the previous close.
Turmeric prices in the intraday are expected to trade sideways due to lacklustre demand from the domestic buyers. With fresh arrivals to gain pace in the coming days prices are expected to witness selling pressure in the short term, according to Angel Commodities.
Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce45 lakh bags of turmeric a rise of 29% as compared to previous year.
According to Spices Board of India, exports of Turmeric during April 2011- November 2011 stood at 58,000 tonnes as compared to 35500 tonnes in 2010-11, rise of 56%. Targets set by the Spices Board have already been met till October 2011. Exports are expected to touch new historical levels in 2011-12.
