NCDEX Turmeric under short covering; Resistance seen at 7280
Commodity Online | July 17 2019
UPDATED 11:40:04 IST

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Technically Turmeric market is under short covering as market has witnessed drop in open interest by 3.61% to settled at 11475 while prices up 120 rupees.

Now NCDEX Turmeric is getting support at 6958 and below same could see a test of 6794 levels, and resistance is now likely to be seen at 7280, a move above could see prices testing 7438.

Turmeric on NCDEX settled up by 1.71% at 7120 tracking strong export demand at spot markets and improving export demand. Current year Turmeric sowing reported delayed by 20 - 25 days in Maharashtra due to water scarcity.

In Sangli district of Maharashtra and adjoining area of Karnataka till now 35 -40% turmeric sowing completed, farmers were waiting for rainfall. In Andhra Pradesh, Telangana, Tamil Nadu, Turmeric sowing current year reported delay by 10 – 15 days due to delayed monsoon, in Andhra Pradesh sources revealed that area may go down current year, farmer may shift to Maize crop.

Till now, 15 – 20% sowing completed in AP and Telangana, mostly farmers were waiting for monsoon rainfall. In Andhra Pradesh, Duggirala market new turmeric crop continued in the market, currently on an average 11,000 – 15,000 quintal reported on daily basis.

Turmeric production for 2019-20 is estimated at 532,353 MT (basis dry crop) compared to previous year’s 476,771 MT. While, turmeric exports in first 4-months in 2019, up by 10% to 42,000 tn compared to 38,171 tn.

Country exported about 1.33 lakh tonnes of turmeric in FY 18-19 compared to 1.11 lt last year. In 2018/19, production 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 6507.15 Rupees gained 140 Rupees.

Trading Ideas:
--Turmeric trading range for the day is 6794-7438.
--Turmeric ended with gains tracking strong export demand at spot markets and improving export demand.
--Current year Turmeric sowing reported delayed by 20 - 25 days in Maharashtra due to water scarcity.
--Turmeric sowing current year reported delay by 10 – 15 days due to delayed monsoon, in Andhra Pradesh sources revealed that area may go down current year
--In Nizamabad, a major spot market in AP, the price ended at 6507.15 Rupees gained 140 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 9050.00
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Sugar 0.4 4000.00

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