Technically Turmeric market is under short covering as market has witnessed drop in open interest by 8.96% to settled at 14385 while prices up 148 rupees.
Now NCDEX Turmeric is getting support at 6430 and below same could see a test of 6326 level, And resistance is now likely to be seen at 6618, a move above could see prices testing 6702.
Turmeric on NCDEX settled up by 2.32% at 6534 as support seen on government procurement in some states coupled with good exports. However, upside seen limited due to near normal monsoon forecast and higher carryover stocks.
There has been an increase in turmeric arrivals in all the markets of Erode. If traders get more orders, they can buy turmeric at higher prices. By the end of April, new turmeric will start coming in the areas of Erode.
New turmeric is coming in for sale from Mysore and Dhrampuri for the last three. Worries over El Nino conditions have eased and there are indications of another year of robust monsoon rain, according to the latest assessment by the country’s weather office.
There were also concerns that drought conditions and cold weather will affect the crop production. Farmers have demanded the Tamil Nadu Government procure turmeric from farmers at Rs. 12,000 a quintal immediately.
Swathantira Raju, President, of a small and marginal farmer’s association, in a statement demanded the State government procure all the turmeric with the farmers at Rs. 12,000 a quintal.
As per Commerce Ministry, turmeric exports during the month of January, down 11.4% y/y to 7,774 tonnes (Vs 8,773 t). However, for Apr-Jan period exports up 18% at 1.10 lakh tonnes compared to 93,350 tonnes last year for the same period. In Nizamabad, a major spot market in AP, the price ended at 6396.75 Rupees gained 16.4 Rupees.
--Turmeric trading range for the day is 6326-6702.
--Turmeric gained as support seen on government procurement in some states coupled with good exports.
--However, upside seen limited due to near normal monsoon forecast and higher carryover stocks.
--Worries over El Nino conditions have eased and there are indications of another year of robust monsoon rain.
--In Nizamabad, a major spot market in AP, the price ended at 6396.75 Rupees gained 16.4 Rupees.
Courtesy: Kedia Commodities