NCDEX Turmeric may trade between 8182-8478 levels

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Turmeric on NCDEX settled up by 1.11% at 8364 despite of sowing operations are getting momentum due to good rains in producing centres. Sowing operations are reported in full swing in most of the producing states as rains have picked up in the producing areas of Andhra Pradesh, Telengana, Tamil Nadu, Odisha and Maharashtra thanks to good monsoon rains. Traders are expecting higher acreage this year. In Telangana State, Turmeric sowing reported, around 21028 hectares as compared to last year same period 25516 hectares, normal in season 48083 hectares.

In Andhra Pradesh, till now Turmeric sowing complete around 2522 hectares as compared to last year 2638 hectares. India’s 2015-16 output was hit by weak rains. Turmeric production for the current crop year (2015-16) is estimated to be around 315,000 tons compared to the previous year production of 324,000 tons. During the 2015-16, India exported 88,500 ton turmeric as against 86,000 ton a year ago because of increased demand from Gulf countries. Spot turmeric prices at Erode markets decreased on higher arrivals.

Spot turmeric lost Rs. 200 a quintal as 7,000 bags of only medium variety turmeric arrived for sale and the traders purchased 65 per cent of the arrived stockiation. The price of the finger variety was down Rs. 220 a quintal and the root variety by Rs. 180-200. At the Erode Turmeric Merchants Association, the finger turmeric fetched Rs. 7,755-9,566 a quintal; the root variety Rs. 7,749-8,612. In Nizamabad, a major spot market in AP, the price ended at 8496.25 rupees gained 43.75 rupees. Technically now Turmeric is getting support at 8272 and below same could see a test of 8182 level, and resistance is now likely to be seen at 8420, a move above could see prices testing 8478.

Trading Ideas:
–Turmeric trading range for the day is 8182-8478.
–Turmeric gains despite of sowing operations are getting momentum due to good rains in producing centers.
–In Telangana State, Turmeric sowing reported, around 21028 hectares as compared to last year same period 25516 hectares.
–NCDEX accredited warehouses turmeric stocks gained by 250 tonnes to 6171 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 8496.25 rupees gained 43.75 rupees.

Courtesy: Kedia Commodities

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