Turmeric on NCDEX settled down -2.18% at 6998 on account of fall in physical and export demand at the spot market. Though, some losses were capped on reports of lower output due to wet weather in turmeric growing areas. Turmeric area reported up due to favourable weather condition at the sowing period which likely to impact production. As per production estimates, turmeric production likely to higher by around 7.5% during current year.
As per market sources, production year 2015-16 started with carry-forward stocks of 1.4 lakh tonnes compared to 2.1 lakh tonnes in 2014-15. The consecutive back-to-back droughts in India have impacted turmeric production in 2014-15 and 2015-16. India produced 2.52 lakh tonnes of turmeric in 2015-16, lower by 15 per cent than the previous year. At Nizamabad market total arrivals are at 600 quintals, higher by 100 quintals from previous day’s arrivals.
At Warangal market total arrivals are at 300 bags, lower by 200 bags from previous day’s arrivals. Spot turmeric prices at Erode markets increased. Traders quoted higher price for the spice and purchased 60 per cent of the arrivals. This is due to the local demand received by some traders. Further, there was a Rs. 200 a quintal price rise.
More than 70 per cent of the arrived turmeric bags re medium variety turmeric, so the buyers procured 60 per cent medium variety turmeric. Technically market is under fresh selling as market has witnessed gain in open interest by 0.47% to settled at 14850 while prices down -156 rupee, now Turmeric is getting support at 6881 and below same could see a test of 6765 level, and resistance is now likely to be seen at 7177, a move above could see prices testing 7357.
--Turmeric trading range for the day is 6764-7356.
--Turmeric prices dropped on account of fall in physical and export demand at the spot market.
--Though, some losses were capped on reports of lower output due to wet weather in turmeric growing areas.
--NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 7404 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 7407.15 rupees remains unchanged at0 rupees.
Courtesy: Kedia Commodities