NCDEX Turmeric likely to move in a range of 8014-8362

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Turmeric on NCDEX settled up by 1.18% at 8212 on expectation of pickup in demand from north India. Though, some gains were capped on hopes of good output as weather in the turmeric-growing regions is expected to remain good for the season. The arrivals in the main physical markets such as Nizamabad, Duggirala (AP), Salem, Erode and Sangli reported decreasing. There is expectation of lower arrivals and good upcountry demand may lend support in coming weeks.

Turmeric acreage in Telangana as on 20-Jul-16 was around 30,000 hectares as compared to 31,000 hectares last year. The acreage is lower compared to normal. As per dept of commerce data, turmeric exports in April 2016 increased by 27% compared to last year at 9,135 tonnes. In 2015-16, 85,426 tonnes exported compared to 90,738 tonnes in 2014-15. Farmers are holding good quality stocks hoping prices to go up in the coming months. Despite poor arrival of turmeric bags at Erode markets, prices of the spice did not increase. Only 3,000 bags arrived for sale but the price of the commodity did not appreciate.

There was no upcountry demand for the turmeric. At the Erode Turmeric Merchants Association, the finger variety went for Rs. 7,434-9,286 a quintal and the root variety Rs. 7,239-8,511. Of the arrival of 811 bags, 558 were sold. In Nizamabad, a major spot market in AP, the price ended at 8426.3 rupees remains unchanged at0 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 7.65% to settled at 14430 while prices up 96 rupee, now Turmeric is getting support at 8112 and below same could see a test of 8014 level, and resistance is now likely to be seen at 8286, a move above could see prices testing 8362.

Trading Ideas:
–Turmeric trading range for the day is 8014-8362.
–Turmeric prices gained on expectation of pickup in demand from north India.
–Though, some gains were capped on hopes of good output as weather in the turmeric-growing regions is expected to remain good.
–NCDEX accredited warehouses turmeric stocks dropped by 148 tonnes to 6003 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 8426.3 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities

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