NCDEX Turmeric under long liquidation; Resistance seen at 6316
Commodity Online | March 15 2019
UPDATED 10:40:13 IST

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Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 0.75% to settled at 9310 while prices down 46 rupees.

Now NCDEX Turmeric is getting support at 6224 and below same could see a test of 6188 level, And resistance is now likely to be seen at 6316, a move above could see prices testing 6372.

Turmeric on NCDEX settled down by 0.73% at 6262 on profit booking amid new season arrivals and good production prospects. Demand for turmeric is subdued in spot markets as stockists are not willing to buy produce that is of poor quality.

Moreover, turmeric arrivals are expected to pick-up from next month which has also restricted gains. However, downside seen limited on the back of concerns that drought conditions and cold weather will affect the crop production.

There are concerns that drought conditions and cold weather will adversely affect the production. Production is forecasted at 11.5 lakh tonnes in the 1st advance estimates by the government little higher then to last year production.

Fresh arrivals are expected to increase at the spot market and will remain peak due to the harvesting activities. Crop prospects have improved in Maharashtra and overall output is expected to be higher.

Demand for turmeric is sluggish in physical as traders are not interested in old crop produce and are awaiting the commencement of new crop supplies, which are likely to hit markets soon.

There are yield concerns from few growing regions as drought conditions and cold weather has not supported the crop; however overall crop in the season will be higher due to increased area.

Turmeric production is expected to be higher this season due to higher acreage in Telangana. In Nizamabad, a major spot market in AP, the price ended at 6230 Rupees dropped 50 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 6188-6372.
--Turmeric prices dropped on profit booking amid new season arrivals and good production prospects.
--Demand for turmeric is subdued in spot markets as stockists are not willing to buy produce that is of poor quality.
--Moreover, turmeric arrivals are expected to pick-up from next month which has also restricted gains.
--In Nizamabad, a major spot market in AP, the price ended at 6230 Rupees dropped 50 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 13.31 10500.00
Coconut Oil NR 15700.00
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Sugar 13.64 4000.00

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