NCDEX Turmeric likely to trade between 7038-7274 range

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Turmeric on NCDEX settled up by 0.62% at 7186 amid expectations of rise in demand. However upside seen limited as there are reports of good production from new season crops. 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. Due to the sudden demonetisation of Rs. 500 and Rs. 1000 currency notes with immediate effect, turmeric sales was affected in Erode. RKV Ravishankar, a trader, said 3,000 bags arrived for sale and only medium and poor quality turmeric were offered. Regarding the price, the finger and the root varieties decreased by Rs. 150-250 a quintal. At the Erode Turmeric Merchants Association, the finger variety went for Rs. 7,269-8,589 a quintal; the root variety Rs. 7,079-7,788.

Of the arrival of 1,082 bags, 459 were traded. In Nizamabad, a major spot market in AP, the price ended at 7547.35 rupees dropped -6.4 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 1.11% to settled at 10975 while prices up 44 rupee, now Turmeric is getting support at 7112 and below same could see a test of 7038 level, and resistance is now likely to be seen at 7230, a move above could see prices testing 7274.

Trading Ideas:
–Turmeric trading range for the day is 7038-7274.
–Turmeric prices ended with gains amid expectations of rise in demand.
–However upside seen limited as there are reports of good production from new season crops.
–NCDEX accredited warehouses turmeric stocks dropped by 44 tonnes to 2818 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7547.35 rupees dropped -6.4 rupees.

Courtesy: Kedia Commodities

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