NCDEX Turmeric under fresh selling; Support seen at 5844
Commodity Online | September 29 2020
UPDATED 11:40:45 IST

MCX Mentha Oil likely to move in a range of 926.7-944.5

MCX Cotton under short covering; Support seen at 19590

MCX Aluminium may trade between 150-153.8 levels

NCDEX Jeera under long liquidation; Resistance seen at 14010

MCX Nickel likely to move in a range of 1144-1196.2

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 0.35% at 5768 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 5688-5888.
--Turmeric prices traded higher on reports of a decrease in Turmeric sown area cross Nizamabad and Marathwada regions.
--The overall decrease in sowing area can be between 15-20% as timely monsoons and lower price realizations for Turmeric
--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 5515 Rupees remains unchanged at0 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 1.2 10450.00
Coconut Oil 0.1 17700.00
Arecanut 0.04 36000.00
Sugar 15 3460.00

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