Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 2.4% to settled at 8120 while prices down 12 rupees.
Now NCDEX Turmeric is getting support at 5494 and below same could see a test of 5466 levels, and resistance is now likely to be seen at 5558, a move above could see prices testing 5594.
Turmeric yesterday settled down by 0.22% at 5524 as harvesting of new crops is expected to begin this week in Maharashtra, Telangana and Andhra Pradesh.
The production of turmeric is expected to be 60-90 lakh bags (one bag of 60 kg) in this season and in addition to 45 lakh bags is expected to be carry-over stock, taking the total stock of turmeric to more than 10 million bags.
Carry overstock is also very high and traders and stockists can also see a cash crunch situation, making purchases as needed.
The festival season is almost coming to an end with orders decreasing in the Middle East, America, Europe as well as Southeast Asia and domestic markets. Farmers spend about ?1.50 lakh to sow turmeric in an acre of land and see yield of about 22-24 quintals.
The break-even price comes to ?7,000 per quintal for farmers. But over last few years market price has been ruling much below the break-even price.
With the neighbouring Andhra Pradesh government having announced MSP for 24 crops, including turmeric, Telangana farmers are also looking for some government support. The AP government has offered ?6,550/quintal as MSP for the crop.
--Turmeric trading range for the day is 5466-5594.
--Turmeric dropped as harvesting of new crops is expected to begin this week in Maharashtra, Telangana and Andhra Pradesh.
--The production of turmeric is expected to be 60-90 lakh bags (one bag of 60 kg) in this season
--On demand, orders have declined from the Middle East, America, Europe and South-East Asia.
--In Nizamabad, a major spot market in AP, the price ended at 5565.9 Rupees gained 0.1 Rupees.
Courtesy: Kedia Commodities