NCDEX Turmeric may trade between 7024-7372; Resistance seen at 7306

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Turmeric on NCDEX settled up by 2.03% at 7240 due to rising demand at the spot market. Further, forecast of heavy rains in Telengana and Maharashtra which damages standing turmeric crop too fuelled the uptrend. Turmeric stocks are low this year because of weak output and arrivals have been falling in all the major producing centres. According to the recent report from Andhra Pradesh Agriculture Department, area under turmeric in the state stood higher at 13,992 hectares  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 favourable weather conditions in all the producing centres.

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. At Nizamabad market total arrivals are at 700 quintals, down by 100 quintals from previous trading day. At Warangal market arrivals were reported at 500 bags, higher by 100 bags from previous day’s arrivals. Spot turmeric prices increased due to some demand.

Around 2,000 bags arrived for sale and 65-70 per cent stocks were sold. In the local market the finger turmeric was up Rs. 200 a quintal and that of the root variety by Rs. 250. In Nizamabad, a major spot market in AP, the price ended at 7579.15 rupees gained 16.65 rupees. Technically now Turmeric is getting support at 7132 and below same could see a test of 7024 level, and resistance is now likely to be seen at 7306, a move above could see prices testing 7372.

Trading Ideas:
–Turmeric trading range for the day is 7024-7372.
–Turmeric prices ended with gains due to rising demand at the spot market.
–Turmeric stocks are low this year because of weak output and arrivals have been falling in all the major producing centres.
–NCDEX accredited warehouses turmeric stocks dropped by 105 tonnes to 5639 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7579.15 rupees gained 16.65 rupees.

Courtesy: Kedia Commodities

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