Support seen at 6912 for NCDEX Turmeric
Commodity Online | September 20 2016
UPDATED 15:05:50 IST

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Turmeric on NCDEX settled down by -0.14% at 6988 on profit booking after prices seen supported on reports of lower output due to wet weather in turmeric growing areas. Further, expectation of pickup in demand for old crops ahead of festival season too limited downside. Turmeric stocks are low this year because of weak output and arrivals have been falling in all the major producing centres. According to the recent report from Andhra Pradesh Agriculture Department, area under turmeric in the state stood higher at 13,992 hectares as on Sep 9 as against 13,031 hectares same period a year ago.

In Telangana the area under turmeric was up at 45,633 hectares as compared to 40,630 hectares a year ago period. Sowing has also increased in other producing states such as Maharashtra, Odisha and Karnataka. Next year's crop may be bumper due to favourable weather conditions in all the producing centres.  Turmeric production for the current crop year (2015-16) is estimated to be around 315,000 tons compared to the previous year production of 324,000 tons. India's Apr-Jun turmeric export jumped 20% to 29,000 tons due to increase shipment to gulf countries. Consumption of turmeric is likely to pick up during the coming winter season. Spot turmeric prices at Erode markets increased. Traders quoted higher price for the spice and purchased 60 per cent of the arrivals.

In Nizamabad, a major spot market in AP, the price ended at 7402.6 rupees dropped -4.55 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -1.38% to settled at 14645, now Turmeric is getting support at 6912 and below same could see a test of 6834 level, and resistance is now likely to be seen at 7078, a move above could see prices testing 7166.

Trading Ideas:
Turmeric trading range for the day is 6834-7166.
Turmeric dropped on profit booking after prices seen supported on reports of lower output due to wet weather in turmeric growing areas.
Turmeric stocks are low this year because of weak output and arrivals have been falling in all the major producing centres.
NCDEX accredited warehouses turmeric stocks dropped by 50 tonnes to 7374 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7402.6 rupees dropped -4.55 rupees.

Courtesy: Kedia Commodities