NCDEX Turmeric under fresh buying; Resistance seen at 7053
Commodity Online | August 13 2019
UPDATED 11:40:23 IST

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Technically NCDEX Turmeric market is under fresh buying as market has witnessed gain in open interest by 5.95% to settled at 12460 while prices up 266 rupees.

Now NCDEX Turmeric is getting support at 6773 and below same could see a test of 6587 level, and resistance is now likely to be seen at 7053, a move above could see prices testing 7147.

Turmeric on NCDEX settled up 3.97% at 6960 amid fears of lower sowing after prices remained under pressure due to fall in export mainly poor demand from Iran. Fresh spell of rains in producing centres is likely to have positive impact on yield and output.

The export demand to Iran, the largest buyers have come to a standstill since May with the expiry of the US sanctions waiver to India for six months. In Tamil Nadu, Turmeric growing regions lower rainfall reported, till now only 45-50% sowing completed.

Turmeric sowing likely to continue till August but depend on water availability. Farmers were very worried for current situations, major dams were reported empty. Rainfall during 01-06-2019 to 31-07-2019, in Tamil Nadu region lower by 29%.

Turmeric exports in June, down 16.22% y/y to 11,883 tn (Vs 14,183 tn), as per govt data. However, turmeric exports in first half of 2019, up by 5.1% to 66,300 tn compared to 63,000 tn. In 2018/19, output is forecast at 10.77 lt in the 3rd advance estimates by the government.

Trading Ideas:
--Turmeric trading range for the day is 6586-7146.
--Turmeric gained amid fears of lower sowing after prices remained under pressure due to fall in export mainly poor demand from Iran.
--Fresh spell of rains in producing centres is likely to have positive impact on yield and output.
--In Tamil Nadu, Turmeric growing regions lower rainfall reported, till now only 45-50% sowing completed.
--In Nizamabad, a major spot market in AP, the price ended at 6640.9 Rupees gained 62.35 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
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