NCDEX Turmeric under fresh selling; Support seen at 6766
Commodity Online | June 07 2019
UPDATED 11:30:05 IST

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MCX Aluminium may trade between 138.2-140 levels

MCX Nickel under fresh buying; Support seen at 1232.4

NCDEX Chana under short covering; Resistance seen at 4076

MCX Zinc likely to move in a range of 181.2-187.6

Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 8.87% to settled at 14975 while prices down 118 rupees.

Now NCDEX Turmeric is getting support at 6766 and below same could see a test of 6694 level, And resistance is now likely to be seen at 6962, a move above could see prices testing 7086.

Turmeric on NCDEX settled down by 1.7% at 6838 on profit booking after prices gained as turmeric supply declined in the physical markets as majority of farmers are not willing to sell produce at lower prices.

Government procurement in some states coupled with improving demand for exports. The total arrival of 2,309 bags of turmeric 1,041 bags were sold at the Erode Turmeric Merchants Association Sales yard.

As per Commerce Ministry, turmeric exports during the month of February, up 5.6% y/y to 8,454 tonnes (Vs 8,006 t). However, for Apr-Feb period exports are up by 17% at 1.19 lt compared to 1 lt last year for the same period.

In 2018/19, production is forecast at 11.5 lt in the 1st advance estimates by the government. Currently, buyers are active in the spot amid supply of new crop. The new turmeric supply in Andhra Pradesh Duggirala market has already started.

However, the quantity is on the lower side because the farmers are not getting remunerative prices. Old crop turmeric stocks with traders are expected around 20 lakh bags across the country.

Worries over El Nino conditions have eased and there are indications of another year of robust monsoon rain, according to the latest assessment by the country’s weather office.

There were also concerns that drought conditions and cold weather will affect the crop production. In Nizamabad, a major spot market in AP, the price ended at 6717.65 Rupees dropped 100 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 6694-7086.
--Turmeric dropped on profit booking after prices gained as turmeric supply declined in the physical markets as majority of farmers are not willing to sell.
--Government procurement in some states coupled with improving demand for exports.
--The total arrival of 2,309 bags of turmeric 1,041 bags were sold at the Erode Turmeric Merchants Association Sales yard.
--In Nizamabad, a major spot market in AP, the price ended at 6717.65 Rupees dropped 100 Rupees.

Courtesy: Kedia Commodities              

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