NCDEX Turmeric likely to move in a range of 6740-6956
Commodity Online | September 23 2016
UPDATED 12:30:51 IST

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Turmeric on NCDEX settled up by 0.38% at 6850 on forecast of heavy rains in turmeric growing areas. Further, expectation of pickup in demand for old crops ahead of festival season also added support to turmeric prices’ uptrend. There is forecast of wet weather in turmeric growing areas in South, which may enhance production. However, excessive rains may affect the quality. Turmeric acreage in Telangana as on 14 Sep was up 12% at 46,000 hectares as compared to 41,000 hectares last year. Sowing of turmeric is over in 93% of normal area and up by 107 % of normal sowing area.

As per dept of commerce data, country exported about 32,834 tonnes of turmeric during April-June period up by 32% compared to same period last year. Turmeric production for the current crop year (2015-16) is estimated to be around 315,000 tons compared to the previous year production of 324,000 tons. India's Apr-Jun turmeric export jumped 20% to 29,000 tons due to increase shipment to gulf countries. Consumption of turmeric is likely to pick up during the coming winter season. Spot turmeric prices at Erode markets increased. Traders quoted higher price for the spice and purchased 60 per cent of the arrivals.

The arrival of turmeric for sale is decreasing every day. Many farmers are not bringing their produce for sale for want of higher price and Cauvery issue. Only 1,000-1,500 bags of medium variety turmeric are offered for sale daily. In Nizamabad, a major spot market in AP, the price ended at 7408.3 rupees dropped -1.4 rupees. Technically now Turmeric is getting support at 6796 and below same could see a test of 6740 level, and resistance is now likely to be seen at 6904, a move above could see prices testing 6956.

Trading Ideas:
--Turmeric trading range for the day is 6740-6956.
--Turmeric prices gained on forecast of heavy rains in turmeric growing areas.
--Further, expectation of pickup in demand for old crops ahead of festival season also added support to prices.
--NCDEX accredited warehouses turmeric stocks dropped by 120 tonnes to 7194 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 7408.3 rupees dropped -1.4 rupees.

Courtesy: Kedia Commodities