NCDEX Turmeric under long liquidation; Support seen at 7602
Commodity Online | May 07 2021
UPDATED 11:40:37 IST

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Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 10.68% to settled at 5520 while prices down 66 rupees.

Now NCDEX Turmeric is getting support at 7602 and below same could see a test of 7550 levels, and resistance is now likely to be seen at 7728, a move above could see prices testing 7802.

Turmeric yesterday settled down by 0.85% at 7654 on profit booking as pressure seen after prices dropped across various agricultural produce marketing committee (APMC) yards in the country mainly on account of slack demand.

Turmeric prices are down as there is no demand because traders fear a fresh lockdown due to rise in Covid-19 cases could result in stockists’ purchases dropping. Prices have declined by about ?1,000 a quintal at various APMCs in Tamil Nadu, Karnataka and Maharashtra.

Prices in Tamil Nadu and Maharashtra have slid to below ?7,400 from about ?8,400 at the start of the month. Arrivals are good but there is no demand particularly from stockists. Turmeric goes to Gujarat, particularly to cities such as Bhavnagar, Jamnagar and Ahmedabad.

But purchases from stockists have slowed down since they fear grocery stores will shut due to lockdown.

According to the Spices Board of India, turmeric exports increased 34 per cent in volume during the April-December period of the last fiscal to 1.39 lakh tonnes (1.03 lakh tonnes). The value of shipments increased 19 per cent to ?2,461 crore during the period.

According to the first advance estimates of horticultural crop for the current season to June, turmeric production is projected to be lower at 11.06 lakh tonnes (lt) against 11.53 lt last year. In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped 46.9 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 7550-7802.
--Turmeric dropped on profit booking as pressure seen after prices dropped across various APMC yards in the country
--Turmeric prices are down as there is no demand because traders fear a fresh lockdown due to rise in Covid-19 cases resulting in stockists’ purchases dropping
--Prices have declined by about ?1,000 a quintal at various APMCs in Tamil Nadu, Karnataka and Maharashtra.
--In Nizamabad, a major spot market in AP, the price ended at 7600 Rupees dropped 46.9 Rupees.

Courtesy: Kedia Commodities

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