NCDEX Turmeric may move in a range of 7044-7596
Commodity Online | October 28 2021
UPDATED 11:40:00 IST

MCX Cotton under fresh buying; Resistance seen at 31290

NCDEX Jeera under long liquidation; Support seen at 15790

NCDEX Turmeric may trade between 7258-7574 levels

MCX Crude Palm Oil under fresh selling; Resistance seen at 1105

NCDEX Ref. Soya Oil under long liquidation; Support seen at 1188

Technically Turmeric market is under short covering as market has witnessed drop in open interest by 17.14% to settled at 8265 while prices up 250 rupees.

Now NCDEX Turmeric is getting support at 7220 and below same could see a test of 7044 levels, and resistance is now likely to be seen at 7496, a move above could see prices testing 7596.

Turmeric yesterday settled up by 3.5% at 7394 following export demand from Europe, Gulf countries and Bangladesh. However upside seen limited amid prospects of better crop this kharif season along with tepid demand.

The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Due to favorable weather, production is likely to be higher in 2021-22 (July-June) season.

Besides, heavy carryover stocks and slack in bulk demand are keeping prices under pressure. In the first 4 months of FY 2021-22, turmeric exports declined by 26% to 53,000 tonnes as compared to the same period last year, but almost at the same level as the 5-year average.

Support is expected on the news that due to June and July floods almost 10% crop washed away so we can see 10-15 % less sowing also farmers had shown interested in other crops as prices where more.

Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices.

In the first 6 months of 2021, turmeric exports declined by 3% to 77,300 tonnes compared to the same period last year, but could be higher in the coming months. In Nizamabad, a major spot market in AP, the price ended at 7126.55 Rupees gained 12.65 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 7044-7596.
--Turmeric gained following export demand from Europe, Gulf countries and Bangladesh.
--However upside seen limited amid prospects of better crop this kharif season along with tepid demand.
--The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season.
--In Nizamabad, a major spot market in AP, the price ended at 7126.55 Rupees gained 12.65 Rupees.

Courtesy: Kedia Commodities

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