NCDEX Turmeric under short covering; Support seen at 5338
Commodity Online | May 26 2020
UPDATED 11:40:41 IST

NCDEX Chana under long liquidation; Resistance seen at 5254

MCX Cotton under fresh selling; Support seen at 20030

NCDEX Jeera under long liquidation; Resistance seen at 14210

NCDEX Turmeric under long liquidation; Support seen at 5686

NCDEX Mustard Seed under long liquidation; Resistance seen at 6183

Technically Turmeric market is under short covering as market has witnessed drop in open interest by 7.49% to settled at 5555 while prices up 62 rupees.

Now NCDEX Turmeric is getting support at 5338 and below same could see a test of 5278 levels, and resistance is now likely to be seen at 5440, a move above could see prices testing 5482.

Turmeric yesterday settled up by 1.16% at 5398 as buyers reported active from lower levels as lower sowing area in Tamil Nadu due to deficient rainfall and in AP as shifted to Cotton and in some parts to Chilli due to current higher prices. At spot market, new Turmeric supply continued with higher moisture level around 4 - 5%.

Turmeric production for 2020-21 is estimated at 452,698 MT (basis dry crop) compared to previous year’s 532,353 MT. AP Govt. declared Turmeric support prices.

Earlier it was Rs.6,350/-per quintal but now it is Rs.6,850/-per quintal, for new crop from 1st February to 31st May. Andhra Pradesh Govt. started Turmeric procurement in Kadapa and Duggirala spot market from. last two days around 1,000 bags procured.

In Nizamabad, Turmeric growing regions, 70 – 75% harvesting completed and 60% traded already before lockdown as new crop arrivals started coming from January last week. In Erode, 50 - 55% turmeric harvesting completed, harvesting process reported slow due to shortage of labour.

Coimbatore – 60% completed, harvesting is going on. Salem – 65% completed, harvesting is going on. In Maharashtra – Sangli growing regions – 15- 20% completed, harvesting is going on, in Basmat growing regions – 50-55% completed, harvesting is going on, not traded yet, in Nanded- 55-60% completed, harvesting is going on, not traded yet.

Trading Ideas:
--Turmeric trading range for the day is 5278-5482.
--Turmeric gains as buyers reported active from lower levels as lower sowing area in Tamil Nadu
--At spot market, new Turmeric supply continued with higher moisture level around 4 - 5%.
--Turmeric production for 2020-21 is estimated at 452,698 MT (basis dry crop) compared to previous year’s 532,353 MT.
--In Nizamabad, a major spot market in AP, the price ended at 5229.15 Rupees remains unchanged at0 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 11200.00
Coconut Oil 0.1 18900.00
Arecanut 266 39771.00
Sugar 197 3282.00

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