NCDEX Turmeric likely to trade between 7188-7508 range

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Turmeric on NCDEX settled up 0.77% at 7346 on rising domestic as well as exports demand at the 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. Officials of Horticulture department estimate that turmeric farmers in the Nizamabad may not get expected yields this year due to the heavy rains in the last week of September.

After a severe drought and a subsequent good monsoon, farmers have cultivated turmeric in around 30,000 acres across the Nizamabad. The crop grew on expected lines and the farmers were confident that this year they will surely get 45 to 50 quintals yields per acre. Turmeric cultivation has come down in Kerala, TN, AP and Maharashtra and they thought Nizamabad farmers may achieve record yields. However the situation changed due to the rains but the farmers are in better position compared to the last two years. At Erode market arrivals were reported at 400 quintals, up by 200 quintals from previous day’s arrivals.

At Nizamabad market sources reported arrivals at 700 quintals, higher by 100 quintals from previous trading day. Arrivals, sales and prices of turmeric improved at Erode markets after a gap of three days as farmers started to accept the cheques from traders. Technically market is under short covering as market has witnessed drop in open interest by -0.2% to settled at 7590, now Turmeric is getting support at 7267 and below same could see a test of 7189 level, and resistance is now likely to be seen at 7427, a move above could see prices testing 7509.

Trading Ideas:
Turmeric trading range for the day is 7188-7508.
Turmeric prices gained on rising domestic as well as exports demand at the spot market.
Currently the supplies are for medium and poor quality during the rest of the season till new crop arrived.
NCDEX accredited warehouses turmeric stocks dropped by 40 tonnes to 2429 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 7630 rupees gained 7.5 rupees.

Courtesy: Kedia Commodity

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