Fresh selling seen in NCDEX Turmeric; Support seen at 7068
Commodity Online | September 02 2016
UPDATED 11:58:49 IST

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Turmeric on NCDEX settled down by -1.05% at 7150 on good forecast of rains in south during next fortnight. Moreover, good health of new season crop in south Indian states also weigh on prices in recent weeks. Turmeric acreage in Telangana as on 24 Aug was up 15.4 % at 45,000 hectares as compared to 39,000 hectares last year. Sowing of turmeric is over in 93 % of normal area and up by 110 % of normal sowing area.

As per dept of commerce data, turmeric exports in April- May 2016 increased by 31% compared to last year at 21,256 tonnes.  As per Spice Board India, country exported about 29,000 tonnes of turmeric during April-June period up by 20% compared to same period last year.

The arrivals in the main physical markets such as Nizamabad, Duggirala (AP), Salem, Erode and Sangli reported decreasing. There is expectation of lower arrivals and good upcountry demand may lend support in coming weeks. At Duggirala market estimated market supply was at 168 quintals, up by 166 quintals as against previous day. At Salem market estimated market supply was at 1 quintals, unchanged as compared to previous day’s arrival.

The arrival and sale of turmeric decreased at Erode markets for want of upcountry demand. The farmers due to poor price are bringing only medium and low quality turmeric for sale, keeping the good quality turmeric in their godowns. Technically market is under fresh selling as market has witnessed gain in open interest by 2.47% to settled at 12015 while prices down -76 rupee, now Turmeric is getting support at 7068 and below same could see a test of 6986 level, and resistance is now likely to be seen at 7256, a move above could see prices testing 7362.

Trading Ideas:
--Turmeric trading range for the day is 6986-7362.
--Turmeric prices ended with losses on good forecast of rains in south during next fortnight.
--Turmeric acreage in Telangana as on 24 Aug was up 15.4 % at 45,000 hectares as compared to 39,000 hectares last year.
--NCDEX accredited warehouses turmeric stocks gained by 110 tonnes to 7731 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 7775 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities