NCDEX Turmeric under fresh selling; Support seen at 7800
Commodity Online | April 16 2021
UPDATED 11:40:27 IST

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Technically Turmeric market is under fresh selling as market has witnessed gain in open interest by 4.43% to settled at 10140 while prices down 364 rupees.

Now NCDEX Turmeric is getting support at 7800 and below same could see a test of 7580 levels, and resistance is now likely to be seen at 8320, a move above could see prices testing 8620.

Turmeric yesterday settled up by 2.12% at 8188 as support seen after preliminary data showed for March 2021 showed turmeric exports gained by 5% on year on year basis to 13,026 tons against 12,462 tons in March 2020.

However this year export growth is seen limited due to over 40% rise in turmeric prices. Prices also seen supported on export orders to Bangladesh, besides domestic demand and projections of lower production.

Prices have increased in view of the closure of physical markets in Andhra Pradesh, Telangana and Maharashtra for nearly two weeks.

According to the Ministry of Agriculture and Farmers Welfare’s first advance estimate of horticultural crops, turmeric production is projected to be 11.06 lakh tonnes (lt) this season (July 2020-June 2021) compared with 11.53 lt the previous season.

The crop this year is at least 20 per cent lower as unseasonal rains affected the crop in Telangana, Karnataka and Maharashtra. Arrivals have been sluggish proving that the projections of the lower crop are correct.

Arrivals so far this year been 10.15 lakh bags (50 kg each) against 11.50 lakh bags last year and 14 lakh bags in 2019. In places such as Nanded in Maharashtra, arrivals are at least 40 per cent lower. In Nizamabad, a major spot market in AP, the price ended at 7752.8 Rupees gained 72.8 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 7886-8442.
--Turmeric prices gained as support seen after preliminary data showed for March 2021 showed turmeric exports gained by 5%
--Prices also seen supported on export orders to Bangladesh, besides domestic demand and projections of lower production.
--Prices have increased in view of the closure of physical markets in Andhra Pradesh, Telangana and Maharashtra for nearly two weeks.
--In Nizamabad, a major spot market in AP, the price ended at 7661.75 Rupees dropped 91.05 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 5 17200.00
Ghee NR 42000.00
Coconut Oil 0.1 19000.00
Tamarind Seeds 10 3200.00

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