Fresh buying seen in NCDEX Turmeric; Resistance seen at 7068

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Turmeric on NCDEX settled up by 1.98% at 7000 on the back of strong demand in the spot markets. However, gains remained capped on expectations of increasing production in coming harvesting season and lowering export Currency demand in recent months. Favourable weather conditions in major producing regions Tamil Nadu and Telangana also weighed on the sentiment.

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. It is expected that the demand from the industrial buyers will support the prices just before new season harvesting. 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. 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.

In Nizamabad, a major spot market in AP, the price ended at 7528.95 rupees gained 21.1 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 0.55% to settled at 8250 while prices up 136 rupee, now Turmeric is getting support at 6868 and below same could see a test of 6734 level, and resistance is now likely to be seen at 7068, a move above could see prices testing 7134.

Trading Ideas:
–Turmeric trading range for the day is 6734-7134.
–Turmeric prices gained on the back of strong demand in the spot markets.
–However, gains remained capped on expectations of increasing production in coming harvesting season.
–NCDEX accredited warehouses turmeric stocks dropped by 5 tonnes to 2649 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7528.95 rupees gained 21.1 rupees.

Courtesy: Kedia Commodities

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