Turmeric may trade 7968-8208 range, down at 8086

Turmeric is getting support at 8026 and below same could see a test of 7968 level, and resistance is now likely to be seen at 8146, a move above could see prices testing 8208.

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MUMBAI: Turmeric on NCDEX settled down by -0.42% at 8086 on anticipation of good sowing in next season on forecast of good rains at the producing belts. Though, some losses were capped on rising demand from traders and stockists at the spot market. Turmeric arrivals in the main producing centres like Nizamabad, Erode, Duggirala have been declining as farmers are holding the stocks hoping prices to rise in the coming months.

Forecast of normal and timely onset of monsoon may bring down prices of turmeric in the coming weeks it will boost the new crop prospects. Turmeric supplies may slow down, as farmers may not sell at lower prices. In the Delhi spot market turmeric single polish gattha was traded at Rs 9,000-9,300 a quintal on lack of sufficient support from masala manufacturers. During the Apr-Dec 2015, India exported 68,500 ton turmeric as against 64,785 ton a year ago because of increased demand from Gulf countries. No turmeric bags arrived for sale to the Regulated Market.

For the first time during this season, no bag arrived to the Regulated Market Committee. But in other centres the arrival was very poor. For the second day today, the arrival was very low at 1,300 bags. Only local varieties arrived for sale and local buyers procured fifty per cent of the stock. At the Erode Turmeric merchants Association, the finger turmeric was sold at Rs. 8,269-9,089 a quintal; the root variety Rs. 8,166-8,569. In Nizamabad, a major spot market in AP, the price ended at 8712.5 rupees remains unchanged at0 rupees. Technically now Turmeric is getting support at 8026 and below same could see a test of 7968 level, and resistance is now likely to be seen at 8146, a move above could see prices testing 8208.

Trading Ideas:
–Turmeric trading range for the day is 7968-8208.
–Turmeric prices dropped on anticipation of good sowing in next season on forecast of good rains at the producing belts.
–Turmeric arrivals in the main producing centres like Nizamabad, Erode, Duggirala have been declining as farmers are holding the stocks.
–NCDEX accredited warehouses turmeric stocks gained by 80 tonnes to 4630 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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