NCDEX Turmeric market under long liquidation

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Turmeric on NCDEX settled down -2.62% at 6998 on expectations of increasing production in coming harvesting season and lowering export demand in recent months. Currently the supplies are for medium and poor quality during the rest of the season till new crop arrived. 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. 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. Turmeric sowing reported, around 45633 hectares as compared to last year same period 40830 hectares, normal in season 48083 hectares. Turmeric crop is in vegetative stage to flowering stage. Technically market is under long liquidation as market has witnessed drop in open interest by -16.86% to settled at 9125 while prices down -188 rupee, now Turmeric is getting support at 6853 and below same could see a test of 6707 level, and resistance is now likely to be seen at 7221, a move above could see prices testing 7443.

Trading Ideas:
–Turmeric trading range for the day is 6708-7444.
–Turmeric prices dropped on expectations of increasing production in coming harvesting season and lowering export demand in recent months.
–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 94 tonnes to 2724 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7537.5 rupees dropped -9.85 rupees.

Courtesy: Kedia Commodities

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