Fresh selling seen in Turmeric, open interest up by 1.87%

Turmeric is getting support at 7951 and below same could see a test of 7873 level, and resistance is now likely to be seen at 8167, a move above could see prices testing 8305.

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MUMBAI: Turmeric on NCDEX settled down -2.29% at 8030 due to negligible upcountry orders from the north Indian pockets. Pressure also seen on account of poor demand due to higher supply of inferior or lower grade turmeric from the producing regions. Though, ample stocks position following new supplies in local mandies too weighed on turmeric prices. Farmers are holding good quality stocks hoping prices to go up in the coming months.

At Sangli market arrivals were reported at 5800 quintals, unchanged as compared to previous day’s arrival. At Warangal market arrivals were reported at 3500 bags, lower by 500 bags as against previous day. At Nizamabad market arrivals were reported at 3000 quintals, down by 2000 quintals as compared to previous day. Turmeric prices expected to look up in the coming week because of fears of weak output caused by lower rains of 2015.

The sale of turmeric in Erode markets has increased. Many traders have started buying the turmeric in large scale though they are getting limited demand from North India. Some traders are keen in buying only the new turmeric and some procured the hybrid turmeric. Around 400 bags of turmeric including 900 bags of new crop arrived and 70 per cent of the stocks were sold.

Some 10 bags of hybrid turmeric arrived and fetched Rs. 10,066 a quintal. But other varieties were sold for Rs. 9,600-9,700. Technically market is under fresh selling as market has witnessed gain in open interest by 1.87% to settled at 24500 while prices down -188 rupee, now Turmeric is getting support at 7951 and below same could see a test of 7873 level, and resistance is now likely to be seen at 8167, a move above could see prices testing 8305.

Trading Ideas:
–Turmeric trading range for the day is 7872-8304.
–Turmeric prices dropped due to negligible upcountry orders from the north Indian pockets.
–Pressure also seen on account of poor demand due to higher supply of inferior or lower grade turmeric from the producing regions.
–NCDEX accredited warehouses turmeric stocks gained by 60 tonnes to 3898 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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