NCDEX Turmeric expected to trade 6650-7106 range

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Turmeric on NCDEX settled down by -1.91% at 6864 amid expectation of bumper output despite of tight stocks position. Turmeric sowing has been completed and output is expected by bumper as standing crop is pest free due to favourable weather conditions. Farmers have sown turmeric on higher area this year. Cash crunch in the market may prevent fresh demand. Turmeric production in Telangana, a major spice producing state, is seen at 210,000 ton compared with 186,000 ton in the previous year, according to the first advance estimate by state agriculture department.

India’s Apr-Jun turmeric export jumped 20% to 29,000 tons due to increase shipment to gulf countries. 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. The overall acreage under turmeric is marginally higher than last year, production is expected to fall because of lower yield. In Nizamabad, a major spot market in AP, the price ended at 7507.85 rupees dropped -29.65 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -10.08% to settled at 8205 while prices down -134 rupee, now Turmeric is getting support at 6756 and below same could see a test of 6650 level, and resistance is now likely to be seen at 6984, a move above could see prices testing 7106.

Trading Ideas:
–Turmeric trading range for the day is 6650-7106.
–Turmeric prices ended with losses amid expectation of bumper output despite of tight stocks position.
–Turmeric sowing has been completed and output is expected by bumper as standing crop is pest free due to favourable weather conditions.
–NCDEX accredited warehouses turmeric stocks dropped by 70 tonnes to 2654 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7507.85 rupees dropped -29.65 rupees.

Courtesy: Kedia Commodities

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