NCDEX Turmeric may trade in range of 7028-7536
Commodity Online | October 17 2016
UPDATED 11:19:59 IST

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Turmeric on NCDEX settled up 0.78% at 7242 tracking firmness in spot demand amid active interest from upcountry traders ahead of festive and marriage season.  Prices also seen supported triggered by reports of crop damage across Telangana and Andhra Pradesh, which received incessant rains. The extent of damage to turmeric is yet to be assessed. Though overall acreage under turmeric is marginally higher than last year, production is expected to fall because of lower yield. The total production in the coming year is expected to be higher due to strong sowing of turmeric in Karnataka.

Sources also stated that total daily arrivals of 2000 bags have been reported in Nizamabad mandi. At Warangal market sources reported arrivals at 200 bags, up by 100 bags from previous day’s arrivals. Spot turmeric prices at Erode markets decreased despite lower arrivals. Only 1,400 bags of medium and poor quality turmeric arrived for sale. The traders quoted decreased price for some bags and only 65 per cent stocks were sold. Still the upcountry demand is very poor. Regarding the price of the commodity, the finger variety was down by Rs. 300 a quintal and the root variety by Rs. 200.

At the Erode Turmeric Merchants Association sales yard, the finger turmeric was sold at Rs. 7,218-8,855 a quintal; the root variety Rs. 7,155-7,699. Of the arrival of 385 bags, 203 were sold. Technically market is under short covering as market has witnessed drop in open interest by -8.72% to settled at 10415 while prices up 56 rupee, now Turmeric is getting support at 7135 and below same could see a test of 7027 level, and resistance is now likely to be seen at 7389, a move above could see prices testing 7535.

Trading Ideas:
--Turmeric trading range for the day is 7028-7536.
--Turmeric gained tracking firmness in spot demand amid active interest from upcountry traders ahead of festive and marriage season.
--Prices also seen supported triggered by reports of crop damage across Telangana and Andhra Pradesh, which received incessant rains.
--NCDEX accredited warehouses turmeric stocks dropped by 334 tonnes to 4135 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 7550 rupees gained 77.8 rupees.

Courtesy: Kedia Commodities