NCDEX Turmeric under short covering; Support seen at 5756
Commodity Online | July 24 2020
UPDATED 11:40:58 IST

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Technically Turmeric market is under short covering as market has witnessed drop in open interest by 2.31% to settled at 6550 while prices up 114 rupees.

Now NCDEX Turmeric is getting support at 5756 and below same could see a test of 5674 levels, and resistance is now likely to be seen at 5880, a move above could see prices testing 5922.

Turmeric yesterday settled up by 1.99% at 5840 due to good demand from the domestic market anticipating high demand in the coming months due to Turmeric’s usage as an immunity booster. Improved demand from overseas buyers is seen given the relaxation in lockdown restrictions has led to some pickup in demand from Bangladesh.

Amid the COVID-19 pandemic, the first freight rake loaded in Telangana headed for Bangladesh South Central Railway (SCR) loaded its first freight rake with 2,474 tonnes of turmeric in 42 wagons at Nizamabad in Telangana and set off for Beanpole in Bangladesh.

On the export front, demand from West Asian countries has risen amid easing of lockdown restrictions. According to the Spices Board of India, amid the Covid-19 induced lockdown, Turmeric exports from India’s Telangana have created a new record.

Telangana has exported 59,580 tonnes of turmeric in the first five months of the year, which is highest for the same period in the last seven years. Exports were sent to countries like the US, the UK, Sri Lanka, and Nepal.

On export front, India exported 1.10 lakh tonnes in 2019-20 (April- January) a decrease of around 4% from the same period of last year. India exported around 0.09 lakh tonnes of Turmeric in January 2020 which is 15% higher than 0.08 lakh tonnes shipped in January 2019.

Trading Ideas:
--Turmeric trading range for the day is 5674-5922.
--Turmeric gains due to good demand from the domestic market anticipating high demand in the coming months due to Turmeric’s usage as an immunity booster.
--On the export front, demand from West Asian countries has risen amid easing of lockdown restrictions.
--Telangana has exported 59,580 tonnes of turmeric in the first five months of the year
--In Nizamabad, a major spot market in AP, the price ended at 5500 Rupees remains unchanged at0 Rupees.

Courtesy: Kedia Commodities