Fresh buying seen in Turmeric, open interest up by 1.38%

Turmeric is getting support at 8150 and below same could see a test of 8108 level, and resistance is now likely to be seen at 8224, a move above could see prices testing 8256.

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MUMBAI: Turmeric on NCDEX settled up by 0.59% at 8192 due to good buying support from retailers and stockists at the spot market. Further, lower stocks following tight supplies from the producing belts too fuelled the uptrend. Farmers are holding good quality stocks hoping prices to go up in the coming months. New season crop has hit the markets and continue to peak in current month but majority of arrivals are of medium quality.

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. At Salem market sources reported arrivals at 1 quintals, steady as against previous day’s arrival. At Warangal market total arrivals are at 2500 bags, down by 1000 bags as against previous day. The price of spot turmeric decreased sharply and sold below Rs. 9,000 a quintal.

Sources usually during this season, sale of turmeric will be very high. But this year, the sale was very low and daily only about 65 per cent stocks got sold. The finger variety decreased by Rs. 400 a quintal. The root variety was also down Rs. 300 a quintal.

At the Erode Turmeric Merchants Association sales yard, finger variety sold at Rs. 8,099 to Rs. 9,009 a quintal. Root variety sold at Rs. 7,899 to Rs. 8,529 a quintal. Of the arrival of 576 bags, about 410 bags were sold. Technically market is under fresh buying as market has witnessed gain in open interest by 1.38% to settled at 26530 while prices up 48 rupee, now Turmeric is getting support at 8150 and below same could see a test of 8108 level, and resistance is now likely to be seen at 8224, a move above could see prices testing 8256.

Trading Ideas:
–Turmeric trading range for the day is 8108-8256.
–Turmeric prices gained due to good buying support from retailers and stockists at the spot market.
–Further, lower stocks following tight supplies from the producing belts too fuelled the uptrend.
–NCDEX accredited warehouses turmeric stocks gained by 130 tonnes to 4252 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 8712.5 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities

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