Fresh buying seen in NCDEX Turmeric

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Turmeric on NCDEX settled up by 0.39% at 7290 due to good demand and lower supplies in the physical market surge in spot market. Though, some gains were capped on heavy arrivals as the turmeric crop in Maharashtra and Andhra Pradesh are in good condition. 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.

The reports of good production from new season crops may pressurize prices as the harvesting begins. On the export front, country exported about 51,147 tonnes of turmeric during April-August period up by 32% compared last year, as per 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. For the second consecutive day, no turmeric sale was conducted. Only 300 bags arrived in all the markets. No farmer is willing to sell their produce. Some traders said the turmeric crop in Maharashtra and Andhra Pradesh are in good condition and hence good number of bags will arrive for sale. Prices decreased in the two sale centres and only 35 per cent of the arrived stocks were sold.

In Nizamabad, a major spot market in AP, the price ended at 7622.5 rupees gained 10 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 0.53% to settled at 7605 while prices up 28 rupee, now Turmeric is getting support at 7240 and below same could see a test of 7190 level, and resistance is now likely to be seen at 7328, a move above could see prices testing 7366.

Trading Ideas:
–Turmeric trading range for the day is 7190-7366.
–Turmeric prices gained due to good demand and lower supplies in the physical market surge in spot market.
–Though, some gains were capped on heavy arrivals as the turmeric crop in Maharashtra and Andhra Pradesh are in good condition.
–NCDEX accredited warehouses turmeric stocks dropped by 20 tonnes to 2469 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7622.5 rupees gained 10 rupees.

Courtesy: Kedia Commodities

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