NCDEX Turmeric under short covering; Support seen at 5710
Commodity Online | March 26 2020
UPDATED 11:40:31 IST

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Technically Turmeric market is under short covering as market has witnessed drop in open interest by 8.8% to settled at 4300 while prices up 224 rupees.

Now NCDEX Turmeric is getting support at 5710 and below same could see a test of 5572 levels, and resistance is now likely to be seen at 5918, a move above could see prices testing 5988.

Turmeric yesterday settled up by 3.98% at 5850 as support seen after exporters across India are confirming an increased interest from corona-affected countries in consuming raw turmeric.

Exporters said cancellation of flights has made it difficult for the traders to fully take advantage of the opportunity.

As per market, the new turmeric crop started arriving in the markets of Nizamabad in Telangana. However, the quality is inferior due to cold weather just before the harvest. The supply is coming from the six-month crop and has a moisture level of 20-30%, against the normal of 7%.

Turmeric prices also trading down due to weak demand and new crop in Telangana’s Nizamabad, the benchmark market. A higher crop this year and rising supply of the new crop in Nizamabad, also dampened sentiment.

Currently, the new crop is arriving only in Nizamabad, and by mid-March supply will start in all other producing centres. Telangana farm department’s second advanced estimates sees turmeric production to be at 305000 tonnes compared to 294000 tonnes produced previous year.

Govt. pegs 2019-20 turmeric output at 913000 tonnes. Turmeric exports from India rose one per cent to 67500 during the Apr-Sep period according to the data released by the Spices Board.

Trading Ideas:
--Turmeric trading range for the day is 5572-5988.
--Turmeric prices gained as support seen after exporters across India are confirming an increased interest.
--Exporters said cancellation of flights has made it difficult for the traders to fully take advantage of the opportunity.
--The supply is coming from the six-month crop and has a moisture level of 20-30%, against the normal of 7%.
--In Nizamabad, a major spot market in AP, the price ended at 5587.5 Rupees gained 16.05 Rupees.

Courtesy: Kedia Commodities