NCDEX Turmeric expected to move 6802-7058 levels

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Turmeric on NCDEX settled down -1.71% at 6890 amid higher acreage and lack of support on hopes of higher output. 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. 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. 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.

India’s Apr-Jun turmeric export jumped 20% to 29,000 tons due to increase shipment to gulf countries. Spot turmeric prices decreased for want of demand. Turmeric prices decreased by Rs. 200 a quintal at Erode markets. Traders for medium quantity of arrival, but the farmers brought 5,000 bags for sale. Only medium quality turmeric arrived for sale and the traders procured 60 per cent stock. Only few bags of good quality turmeric arrived and fetched above Rs. 9,000. At the Erode Turmeric Merchants Association, the finger turmeric was sold at Rs. 6,550-9,089 a quintal; the root variety Rs. 6,222-8,028. Out of the 1,461 bags, 60 per cent stocks were sold.

Technically market is under fresh selling as market has witnessed gain in open interest by 9.59% to settled at 11655 while prices down -120 rupee, now Turmeric is getting support at 6846 and below same could see a test of 6802 level, And resistance is now likely to be seen at 6974, a move above could see prices testing 7058.

Trading Ideas:

–Turmeric trading range for the day is 6802-7058.
–Turmeric prices ended with losses amid higher acreage and lack of support on hopes of higher output. –Sowing of turmeric in Andhra Pradesh stood at 17,000 hectare until Oct 5 up from 15,000 hectare a year ago.
–NCDEX accredited warehouses turmeric stocks dropped by 518 tonnes to 4569 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7523.5 rupees remains unchanged at0 rupees.

Courtesy: Kedia Commodities

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