NCDEX Turmeric likely to move in a range of 6226-6542
Commodity Online | January 17 2020
UPDATED 11:40:19 IST

MCX Mentha Oil under long liquidation; Support seen at 1150.4

NCDEX Chana under long liquidation; Resistance seen at 4097

MCX Cotton under short covering; Support seen at 19090

MCX Aluminium under fresh buying; Resistance seen at 138.4

MCX Nickel under fresh selling; Support seen at 932.3

Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 0.18% to settled at 5630 while prices down 36 rupees.

Now NCDEX Turmeric is getting support at 6300 and below same could see a test of 6226 levels, and resistance is now likely to be seen at 6458, a move above could see prices testing 6542.

Turmeric on NCDEX settled down by 0.56% at 6376 due to continuous supply in the spot market as a result of increased mandi arrivals and expectation of higher production in the crop year 2019-20 amid weak demand.

Turmeric supply reported higher in the spot market, as stockists were releasing their stocks. Sufficient carryover stocks and sluggish demand from domestic and overseas buyers weighed on prices.

Sluggish demand from domestic stockists and expectations of higher crop in the current 2019-20 season also pressurized prices. As per the market feedback, the quality of Turmeric that is coming in the market right now is poor and from the old stock which led to the slowdown in demand.

Demand remains weak in domestic as well as overseas market. On export front, India exported 0.75 Lakh tonnes in 2019-20 (April- October) a decrease of 13% from the same period of last year. India exported around 0.10 Lakh tonnes of Turmeric in October 2019 which is 16% less than 0.12 Lakh tonnes shipped in October 2018.

In 2019-20 marketing year (Feb-Jan), total arrivals reported are up by 30% to around 5.4 Lakh tonne from 4.1 Lakh tonne reported same period last year In Nizamabad, a major spot market in AP, the price ended at 6179.75 Rupees gained 29.75 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 6226-6542.
--Turmeric dropped due to continuous supply in the spot market as a result of increased mandi arrivals.
--Pressure also seen amid expectation of higher production in the crop year 2019-20 amid weak demand.
--The quality of Turmeric that is coming in the market right now is poor and from the old stock which led to the slowdown in demand.
--In Nizamabad, a major spot market in AP, the price ended at 6179.75 Rupees gained 29.75 Rupees.

Courtesy: Kedia Commodities

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