Fresh selling seen in MCX Turmeric; Support seen at 7175

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Turmeric on NCDEX settled down -0.5% at 7230 due to higher sowing acreage in the current season. Though, some losses were capped on expectation of pickup in domestic demand ahead of festival season. No crop damage reported for Turmeric due to recent heavy rainfall in Telangana. Telangana state is major Turmeric growing state in India. As per trade information, rainfall in major growing regions like Nizamabad, Karimnagar and Warangal etc. help Turmeric plant to grow well. In Telangana, Turmeric crop is in vegetative stage to flowering stage.

As per estimate 2016-17, Turmeric area reported up due to favorable weather condition at the sowing period which likely to impact production. As per production estimate, Turmeric production reported higher by around 7.5% during current year. Last year Turmeric area reported down due to lower rainfall at the time of sowing period. Spot turmeric prices at Erode markets are up a tad as some traders received a few North Indian orders. Only medium quality arrived for sale and the traders purchased more than 70 per cent.

The price of the finger variety increased by Rs. 300 a quintal and the root variety by Rs. 350. Of the arrival of 2,300 bags, 70 per cent stocks were sold. At the Erode Turmeric Merchants Association, the finger variety was sold at Rs. 7,444-9,009; the root variety Rs. 7,233-8,000. Out of the 592 bags offered, 622 were sold. Technically market is under fresh selling as market has witnessed gain in open interest by 3.8% to settled at 9295 while prices down -36 rupee, now Turmeric is getting support at 7175 and below same could see a test of 7119 level, and resistance is now likely to be seen at 7283, a move above could see prices testing 7335.

Trading Ideas:
–Turmeric trading range for the day is 7120-7336.
–Turmeric ended with losses due to higher sowing acreage in the current season.
–No crop damage reported for Turmeric due to recent heavy rainfall in Telangana.
–NCDEX accredited warehouses turmeric stocks dropped by 70 tonnes to 5569 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7579.15 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities

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