Turmeric market rises on short covering, open interest drops 1.73%

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Turmeric is getting support at 10140 and below same could see a test of 9962 level, and resistance is now likely to be seen at 10472, a move above could see prices testing 10626.

MUMBAI: Turmeric settled up 1% at 10318 as the reported damage of the standing crop due to long dry spell in Andhra Pradesh and Maharashtra and the anticipated damage due to the prolonged wet weather conditions in Tamil Nadu, are expected to have an impact on the crop production in turmeric growing regions.

At Warangal market sources reported arrivals at 100 bags, unchanged as compared to previous day’s arrival. Persistent rains in south peninsula since last two weeks may damage turmeric crop in Tamilnadu and some parts of Karnataka. As per dept of commerce data, turmeric exports till September, 2015 pegged at 50,916 tonnes while the export for the 2014-15 is 90,738 tonnes compared to 78,360 tonnes in FY14. As on latest sowing data, turmeric sowing In AP, is recorded at 15,864 hectares increase over last years’ acreage as well normal sowing area progress however in Telangana, the sowing area is lower than the normal sowing area at 40,823 hac compared to 43,470 hac last year.

In Telangana, the turmeric crop is at vegetative to flowering stage, sources said that due to recent rainfall in Tamil Nadu, it can offer some respite for the standing crop. Sources added that heavy rainfall also occurred in few of the coastal regions. Technically market is under short covering as market has witnessed drop in open interest by -1.73% to settled at 22140 while prices up 102 rupee, now Turmeric is getting support at 10140 and below same could see a test of 9962 level, and resistance is now likely to be seen at 10472, a move above could see prices testing 10626.

Trading Ideas:
–Turmeric trading range for the day is 9962-10626.
–Turmeric prices gained as the reported damage of the standing crop due to long dry spell in Andhra Pradesh and Maharashtra.
–Persistent rains in south peninsula since last two weeks may damage turmeric crop in Tamilnadu and some parts of Karnataka.
–NCDEX accredited warehouses turmeric stocks gained by 160 tonnes to 4415 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 9575 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities

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