Fresh selling seen in NCDEX Turmeric

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Turmeric on NCDEX settled down by -1.09% at 6912 as pressure seen on expectation of bumper crop next year. The area under the crop increasing between 12% and 30% in the main producing states of Telengana, Andhra Pradesh, Tamil Nadu and Maharashtra. However downside seen limited on expectation of pickup in demand for old crops ahead of festival season. Turmeric stocks are low this year because of weak output and arrivals have been falling in all the major producing centers.

According to the recent report from Andhra Pradesh Agriculture Department, area under turmeric in the state stood higher at 13,992 hectares as on Sep 9 as against 13,031 hectares same period a year ago. In Telangana the area under turmeric was up at 45,633 hectares as compared to 40,630 hectares a year ago period. Sowing has also increased in other producing states such as Maharashtra, Odisha and Karnataka.

Next year’s crop may be bumper due to favorable weather conditions in all the producing centers. Spot Tumreric prices failed to increase at Erode markets despite limited arrivals of the spice. Only 1,700 bags with medium grade varieties arrived for sale. The buyers quoted decreased price and purchased 1,060 bags for the local supply. Only very few upcountry orders were received by one or two traders.

In Nizamabad, a major spot market in AP, the price ended at 7402.6 rupees remains unchanged at0 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 0.51% to settled at 14720 while prices down -76 rupee, now Turmeric is getting support at 6832 and below same could see a test of 6752 level, and resistance is now likely to be seen at 7032, a move above could see prices testing 7152.

Trading Ideas:
–Turmeric trading range for the day is 6752-7152.
–Turmeric prices ended with losses as pressure seen on expectation of bumper crop next year.
–The area under the crop increasing between 12% and 30% in the main producing states of Telengana, Andhra Pradesh, Tamil Nadu and Maharashtra.
–NCDEX accredited warehouses turmeric stocks dropped by 25 tonnes to 7349 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7402.6 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities

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