Turmeric on NCDEX settled up 0.65% at 7078 on expectations of rise in demand amid lower arrivals. However the reports of good production from new season crop limited the upside. Currently the supplies are for medium and poor quality during the rest of the season till new crop arrived which may keep the prices sideways to higher. On the export front, country exported about 51,147 tonnes of turmeric during April-August period up by 32% compared last year, as government data. Expectations of increasing production in coming harvesting season and lowering export demand in recent months are putting pressure on turmeric prices at higher levels.
Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year. At Warangal market estimated market supply was at 100 bags, steady as against previous day’s arrival. At Nizamabad market arrivals were reported at 600 quintals, unchanged as compared to previous day’s arrival. Despite lower arrivals, spot turmeric prices decreased at Erode markets due to inferior quality produce. Arrivals decreased to 1,000 bags and 70 per cent of the stocks were sold.
In the Regulated Marketing Committee, the finger turmeric lost Rs. 90 a quintal and the root variety by Rs. 100. At the Erode Turmeric Merchants Association, the finger variety went for Rs. 6,719-8,556 a quintal; the root variety Rs. 6,689-7,464. Of the arrival of 264 bags, only 88 were traded. Technically market is under fresh buying as market has witnessed gain in open interest by 0.18% to settled at 8250 while prices up 46 rupee, now Turmeric is getting support at 7030 and below same could see a test of 6982 level, and resistance is now likely to be seen at 7112, a move above could see prices testing 7146.
–Turmeric trading range for the day is 6982-7146.
–Turmeric prices gained on expectations of rise in demand amid lower arrivals.
–However the reports of good production from new season crop limited the upside.
–NCDEX accredited warehouses turmeric stocks gained by 10 tonnes to 2649 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7580 rupees gained 51.05 rupees.
Courtesy: Kedia Commodities