NCDEX Turmeric under short covering; Support seen at 5812
Commodity Online | August 07 2020
UPDATED 11:40:27 IST

NCDEX Chana under fresh buying; Support seen at 5056

MCX Cotton under fresh buying; Support seen at 17950

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

NCDEX Mustard Seed under long liquidation; Resistance seen at 5343

Technically Turmeric market is under short covering as market has witnessed drop in open interest by 15.37% to settled at 3965 while prices up 30 rupees.

Now NCDEX Turmeric is getting support at 5812 and below same could see a test of 5786 levels, and resistance is now likely to be seen at 5872, a move above could see prices testing 5906.

Turmeric yesterday settled up by 0.52% 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 5786-5906.
--Turmeric gains due to good demand 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 5478.35 Rupees remains unchanged at0 Rupees.

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 2 10400.00
Coconut Oil 2.5 18800.00
Arecanut 107 36365.00
Sugar 3 3470.00

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