Turmeric on NCDEX settled down -2.14% at 7946 on expectation of better climatic conditions in growing areas and decrease in physical demand from up-country buyers. Further, decrease in physical demand from up-country buyers too fuelled the downtrend. Turmeric acreage in Telangana as on 10 Aug was up 14 % at 43,000 hectares as compared to 38,000 hectares last year. The acreage of turmeric is higher compared to normal in both states.
As per dept of commerce data, turmeric exports in April- May 2016 increased by 31% compared to last year at 21,256 tonnes. In 2015-16, 85,426 tonnes exported compared to 90,738 tonnes in 2014-15. Only fifty per cent of the arrived turmeric bags were sold at Erode markets on Thursday. The farmers, expecting good sale of their commodity, brought 7,000 bags and traders purchased only 45-50 per cent stocks. They quoted a higher price for the good quality turmeric. Only local hybrid finger and root variety turmeric arrived for sale which fetched a maximum price of Rs. 9,369 a quintal (finger variety) and Rs. 8,593 (root variety).
At the Erode Turmeric Merchants Association, the finger turmeric fetched Rs. 7,329-9,369 a quintal; the root variety Rs. 7,239-8,269. Of the arrival of 1,933 bags, only 810 were sold. The arrivals in the main physical markets such as Nizamabad, Duggirala (AP), Salem, Erode and Sangli reported decreasing. Technically market is under fresh selling as market has witnessed gain in open interest by 9% to settled at 23185 while prices down -174 rupee, now Turmeric is getting support at 7855 and below same could see a test of 7765 level, and resistance is now likely to be seen at 8083, a move above could see prices testing 8221.
--Turmeric trading range for the day is 7764-8220.
--Turmeric prices ended with losses on expectation of better climatic conditions in growing areas and decrease in physical demand from up-country buyers.
--As per dept of commerce data, turmeric exports in April- May 2016 increased by 31% compared to last year at 21,256 tonnes.
--NCDEX accredited warehouses turmeric stocks gained by 30 tonnes to 6087 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 8317.1 rupees dropped -56.65 rupees.
Courtesy: Kedia Commodities