Turmeric on NCDEX settled up by 0.56% at 7224 due to rise in demand from domestic and overseas market. However upside seen limited due to better crop prospects because of higher sowing and favourable weather conditions in the producing centres. Pressure also seen in recest sessions due to expectations of higher output in 2016-17 (Jul-Jun) due to a sharp rise in acreage and favourable weather. According to data of agriculture department of Andhra Pradesh, sowing of turmeric stood at 17,000 hectare until Oct 5 up from 15,000 hectare a year ago.
In Telangana, turmeric sowing stood at 46,000 hectare versus 43,000 hectare a year ago. Apart from higher acreage favourable weather will also boost the output and India may produce 9 million bags of turmeric this year. India’s turmeric output in 2016-17 (Jul-Jun) is expected to rise because of better rainfall this season in key growing areas such as Maharashtra, Telangana, Karnataka and Tamil Nadu. India’s Apr-Jun turmeric export jumped 20% to 29,000 tons due to increase shipment to gulf countries. At Nizamabad market total arrivals are at 2000 quintals, up by 1200 quintals from previous trading day. At Salem market total arrivals are at 1 quintals, steady as against previous day’s arrival. At Nizamabad market Total arrivals are at 2000 quintals, up by 1200 quintals from previous trading day.
In Nizamabad, a major spot market in AP, the price ended at 7494.4 rupees gained 2.3 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 1.49% to settled at 9535 while prices up 40 rupee, now Turmeric is getting support at 7170 and below same could see a test of 7114 level, and resistance is now likely to be seen at 7276, a move above could see prices testing 7326.
–Turmeric trading range for the day is 7114-7326.
–Turmeric prices gained due to rise in demand from domestic and overseas market.
–However upside seen limited due to better crop prospects because of higher sowing and favourable weather conditions.
–NCDEX accredited warehouses turmeric stocks dropped by 50 tonnes to 3961 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7494.4 rupees gained 2.3 rupees.
Courtesy: Kedia Commodities