Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 0.03% to settled at 16390 while prices down 58 rupees.
Now NCDEX Turmeric is getting support at 7160 and below same could see a test of 7124 level, And resistance is now likely to be seen at 7252, a move above could see prices testing 7308.
Turmeric on NCDEX settled down by 0.8% at 7196 on sluggish demand and hopes of higher sowing. Demand for turmeric in the local mandis is sluggish from traders as farmers are not selling good quality product.
Turmeric prices were lower as sowing is expected to be higher this year and stocks are comfortable. In Telangana, turmeric acreage rose to 46,692 hectare until August 1 from 41,715 hectare a year ago, State Government data showed.
Overall area under turmeric may increase by 10-15% yearly mainly due to rise in acreage in Telangana. Spot turmeric prices decreased at the markets in Erode as there were limited bags offered for sale.
Only 2,500 bags of turmeric arrived and 70 per cent were sold. Though the traders did not receive any fresh upcountry orders, they purchased good number of bags for their local supply as medium quality turmeric arrived for sale.
Finger variety was down at the Regulated Marketing Committee by Rs. 300 a quintal and Rs. 250 a quintal at the Erode Cooperative Marketing Society, while root variety lost Rs. 500 and Rs. 200 at the Regulated Marketing Committee and at the other two markets respectively.
At the Erode Turmeric Merchants Association, the finger turmeric was sold at Rs. 5,388-8,333 a quintal; root variety at Rs. 5,055-7,377. Of the 2,171 bags on offer, 897 found takers. In Nizamabad, a major spot market in AP, the price ended at 7215 Rupees dropped 60 Rupees.
--Turmeric trading range for the day is 7124-7308.
--Turmeric prices dropped on sluggish demand and hopes of higher sowing.
--Turmeric prices were lower as sowing is expected to be higher this year and stocks are comfortable.
--NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 5215 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 7215 Rupees dropped -60 Rupees.
Courtesy: Kedia Commodities