NCDEX Turmeric under long liquidation; Resistance seen at 6912
Commodity Online | August 23 2019
UPDATED 11:40:15 IST

MCX Mentha Oil likely to move in a range of 1257.9-1281.9

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 long liquidation as market has witnessed drop in open interest by 0.29% to settled at 11845 while prices down 132 rupees.

Now NCDEX Turmeric is getting support at 6738 and below same could see a test of 6674 levels, and resistance is now likely to be seen at 6912, a move above could see prices testing 7022.

Turmeric on NCDEX settled down by 1.9% at 6804 due to fall in export mainly poor demand from Iran. Fresh spell of rains in producing centres is likely to have positive impact on yield and output.

The export demand to Iran, the largest buyers have come to a standstill since May with the expiry of the US sanctions waiver to India for six months. In Tamil Nadu, Turmeric growing regions lower rainfall reported, till now only 45-50% sowing completed.

Turmeric sowing likely to continue till August but depend on water availability. Farmers were very worried for current situations, major dams were reported empty. Rainfall during 01-06-2019 to 31-07-2019, in Tamil Nadu region lower by 29%.

Turmeric exports in June, down 16.22% y/y to 11,883 tn (Vs 14,183 tn), as per govt data. However, turmeric exports in first half of 2019, up by 5.1% to 66,300 tn compared to 63,000 tn.

In 2018/19, output is forecast at 10.77 lt in the 3rd advance estimates by the government.  In Nizamabad, a major spot market in AP, the price ended at 6754.15 Rupees dropped 46.4 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 6674-7022.
--Turmeric prices dropped due to fall in export mainly poor demand from Iran.
--Fresh spell of rains in producing centres is likely to have positive impact on yield and output.
--In Tamil Nadu, Turmeric growing regions lower rainfall reported, till now only 45-50% sowing completed.
--In Nizamabad, a major spot market in AP, the price ended at 6754.15 Rupees dropped 46.4 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Urad 7100.00
Mustard Oil 3.73 9500.00
Coconut Oil 1.5 17800.00
Arecanut 30 22500.00

More