NCDEX Turmeric under short covering; Support seen at 5384
Commodity Online | May 27 2020
UPDATED 11:40:35 IST

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Technically Turmeric market is under short covering as market has witnessed drop in open interest by 1.53% to settled at 5470 while prices up 32 rupees.

Now NCDEX Turmeric is getting support at 5384 and below same could see a test of 5338 levels, and resistance is now likely to be seen at 5488, a move above could see prices testing 5546.

Turmeric yesterday settled up by 0.59% at 5430 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 5338-5546.
--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 5241.65 Rupees gained 12.5 Rupees.

Courtesy: Kedia Commodities