NCDEX Turmeric under fresh selling; Support seen at 5844
Commodity Online | September 24 2020
UPDATED 11:40:14 IST

MCX Mentha Oil likely to move in a range of 932.7-946.5

MCX Aluminium may trade between 148.6-152.6 levels

MCX Nickel likely to move in a range of 1122.6-1164.4

MCX Zinc under long liquidation; Resistance seen at 194.5

MCX Copper under long liquidation; Resistance seen at 529.9

Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 0.24% to settled at 10450 while prices down 44 rupees.

Now NCDEX Turmeric is getting support at 5844 and below same could see a test of 5792 levels, and resistance is now likely to be seen at 5946, a move above could see prices testing 5996.

Turmeric yesterday settled up by 0.17% at 5798 on reports of a decrease in Turmeric sown area for the marketing year 2021 across Nizamabad and Marathwada regions.

The overall decrease in sowing area can be between 15-20% as timely monsoons and lower price realizations for Turmeric over the past few years have made the farmer shift to Cotton, Soybean.

While most of the trade is for immediate use due to uncertainty in the market, Stockiest have started active gradually due to factors like decreasing sowing area and increasing demand in the wake of COVID.

As per market feedback, majority of the stock is with farmers across major cultivation centers. Farmers have been holding back some good quality turmeric with them and the traders are expecting that the farmers will bring the same after September when second turmeric season begins.

Improved demand from overseas buyers is seen given the relaxation in lockdown restrictions has led to some pickup in demand from Bangladesh. Demand from West Asian countries has also risen amid easing of lockdown restrictions. India exported 1.37 lakh tonnes Turmeric in 2019- 20 (April- March) a decrease of around 1.16% from the same period of last year.

Trading Ideas:
--Turmeric trading range for the day is 5708-5876.
--Turmeric prices traded higher on reports of a decrease in Turmeric sown area for the marketing year 2021 across Nizamabad and Marathwada regions.
--The overall decrease in sowing area can be between 15-20% as timely monsoons and lower price realizations for Turmeric over the past few years
--While most of the trade is for immediate use due to uncertainty in the market
--In Nizamabad, a major spot market in AP, the price ended at 5507.5 Rupees dropped 42.5 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1 10500.00
Coconut Oil 0.1 18100.00
Arecanut 1 37729.00
Sugar 40 3450.00

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