NCDEX Turmeric market under long liquidation

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Turmeric on NCDEX settled down by -0.64% at 7190 on late profit booking after prices gained due to good demand and lower level buying by the market participants. 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. The reports of good production from new season crops may pressurize prices as the harvesting begins. 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. In Nizamabad, a major spot market in AP, the price ended at 7612.5 rupees gained 20.85 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -2.98% to settled at 7485, now Turmeric is getting support at 7126 and below same could see a test of 7060 level, and resistance is now likely to be seen at 7304, a move above could see prices testing 7416.

Trading Ideas:
–Turmeric trading range for the day is 7060-7416.
–Turmeric prices dropped on late profit booking after prices gained due to good demand and lower level buying by the market participants.
–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 5 tonnes to 2499 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7612.5 rupees gained 20.85 rupees.

Courtesy: Kedia Commodities

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