NCDEX Turmeric under fresh selling; Resistance seen at 7832
Commodity Online | May 10 2021
UPDATED 11:40:48 IST

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Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 12.11% to settled at 6990 while prices down 180 rupees.

Now NCDEX Turmeric is getting support at 7568 and below same could see a test of 7460 levels, and resistance is now likely to be seen at 7832, a move above could see prices testing 7988.

Turmeric yesterday settled down by 2.29% at 7678 on profit booking as pressure seen after prices dropped across various agricultural produce marketing committee (APMC) yards in the country mainly on account of slack demand.

Turmeric prices are down as there is no demand because traders fear a fresh lockdown due to rise in Covid-19 cases could result in stockists’ purchases dropping. Prices have declined by about ?1,000 a quintal at various APMCs in Tamil Nadu, Karnataka and Maharashtra.

Prices in Tamil Nadu and Maharashtra have slid to below ?7,400 from about ?8,400 at the start of the month. Arrivals are good but there is no demand particularly from stockists.

Turmeric goes to Gujarat, particularly to cities such as Bhavnagar, Jamnagar and Ahmedabad. But purchases from stockists have slowed down since they fear grocery stores will shut due to lockdown.

According to the Spices Board of India, turmeric exports increased 34 per cent in volume during the April-December period of the last fiscal to 1.39 lakh tonnes (1.03 lakh tonnes). The value of shipments increased 19 per cent to ?2,461 crore during the period.

According to the first advance estimates of horticultural crop for the current season to June, turmeric production is projected to be lower at 11.06 lakh tonnes (lt) against 11.53 lt last year. In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped 73.55 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 7460-7988.
--Turmeric dropped on profit booking as pressure seen after prices dropped across various APMC yards in the country
--Turmeric prices are down as there is no demand because traders fear a fresh lockdown due to rise in Covid-19 cases could result in stockists’ purchases dropping
--Turmeric production is projected to be lower at 11.06 lakh tonnes (lt) against 11.53 lt last year.
--In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped 73.55 Rupees.

Courtesy: Kedia Commodities

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