Turmeric market rise on short covering, open interest drops 3.96%
Commodity Online | May 27 2016
UPDATED 14:55:32 IST

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Turmeric on NCDEX settled up by 2.22% at 8102 due to good buying by market participants at lower prices. However, reports of good rains in turmeric growing area in south India capped gains. New season crop has hit the markets and continue to peak in current month but majority of arrivals are of medium quality.  Sources also stated that total daily arrivals of 20000 bags have been reported in Nizamabad mandi. The total production in the coming year is expected to be around 68 lakh bags, up 20 lakh bags from the last year. Spot turmeric prices at Erode showed a mixed trend even as the traders are awaiting upcountry demand.

The sale was minimal and only 5,000 bags arrived for sale. The buyers and stockists purchased limited stock. Around 60 per cent of the arrived stocks were sold. The price of the finger turmeric was up Rs. 100 a quintal in all the markets, but the price of the root variety decreased due to poor quality. At the Erode Turmeric Merchants Association, the finger turmeric was sold at Rs. 7,879-9,329 and the root variety Rs. 7,544-8,455. Of the arrival of 1,349 bags, 710 were sold. As per dept of commerce data, turmeric exports for the period April 2015- Feb 2016 is pegged at 77,081 tonnes while the export for the 2014-15 was 83,713 tonnes for the same period.

In Nizamabad, a major spot market in AP, the price ended at 8462.5 rupees dropped -6.95 rupees. Technically market is under short covering as market has witnessed drop in open interest by -3.96% to settled at 23530, now Turmeric is getting support at 7914 and below same could see a test of 7726 level, and resistance is now likely to be seen at 8244, a move above could see prices testing 8386.

Trading Ideas:
--Turmeric trading range for the day is 7726-8386.
--Turmeric prices gained due to good buying by market participants at lower prices.
--Sources also stated that total daily arrivals of 20000 bags have been reported in Nizamabad mandi.
--NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 5437 tonnes.
--In Nizamabad, a major spot market in AP, the price ended at 8462.5 rupees dropped -6.95 rupees.

Courtesy: Kedia Commodities
 
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