NCDEX Turmeric under fresh buying; Support seen at 5248
Commodity Online | May 21 2020
UPDATED 11:40:42 IST

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Technically Turmeric market is under fresh buying as market has witnessed gain in open interest by 0.92% to settled at 6005 while prices up 32 rupees.

Now NCDEX Turmeric is getting support at 5248 and below same could see a test of 5206 levels, and resistance is now likely to be seen at 5322, a move above could see prices testing 5354.

Turmeric yesterday settled up by 0.61% at 5288 on short covering after prices dropped amid expectation of new crop supply gaining momentum in coming weeks.

No Mysore turmeric was brought for sale by the turmeric growers and only local turmeric came for sale. Only 1,400 bags of turmeric was arrived and only medium quality turmeric was placed for sale.

The buyer traders numbering about 25 attended the sale and purchased only for their local demand, as they are still waiting for fresh upcountry demand. Over 40 turmeric grower farmers have brought their produce and 895 bags (average sale was 65 per cent) were sold.

If the transport system and goods carrier system improve more quantity of turmeric may be procured by the traders. Telangana farm department’s second advanced estimates sees turmeric production to be at 305000 tonnes compared to 294000 tonnes produced previous year.

Govt. pegs 2019-20 turmeric output at 913000 tonnes. Turmeric exports from India rose one per cent to 67500 during the Apr-Sep period according to the data released by the Spices Board. A higher crop this year and rising supply of the new crop in Nizamabad, also dampened sentiment.

Trading Ideas:
--Turmeric trading range for the day is 5206-5354.
--Turmeric recovered on short covering after prices dropped amid expectation of new crop supply gaining momentum in coming weeks.
--Only 1,400 bags of turmeric was arrived and only medium quality turmeric was placed for sale.
--If the transport system and goods carrier system improve more quantity of turmeric may be procured by the traders.
--In Nizamabad, a major spot market in AP, the price ended at 5240.8 Rupees remains unchanged at0 Rupees.

Courtesy: Kedia Commodities