Resistance seen at 7342 for NCDEX Turmeric

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Turmeric on NCDEX settled up by 2.23% at 7236 on expectations of rise in demand due to tigh supply position. However upside was limited due to better crop prospects due to favourable weather and increased sowing. A likely rise in output with acreage increasing in major producing regions Andhra Pradesh, Tamil Nadu, Telangana and Maharashtra also limited the upside. Turmeric sowing has been completed and output is expected by bumper as standing crop is pest free due to favourable weather conditions.

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 exported about 51,147 ton in 2016/17 until August which is up by 32% compared to last year in the corresponding period of 38,761 ton, as per the data released by Department of Commerce. Export grew due to good export demand from Iran and the USA.

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 7591.65 rupees gained 62.7 rupees. Technically market is under short covering as market has witnessed drop in open interest by -6.48% to settled at 7715 while prices up 158 rupee, now Turmeric is getting support at 7082 and below same could see a test of 6930 level, and resistance is now likely to be seen at 7342, a move above could see prices testing 7450.

Trading Ideas:
–Turmeric trading range for the day is 6930-7450.
–Turmeric prices gained on expectations of rise in demand due to tigh supply position.
–A likely rise in output with acreage increasing in major producing regions Andhra Pradesh, Tamil Nadu, Telangana and Maharashtra limited the upside.
–NCDEX accredited warehouses turmeric stocks dropped by 145 tonnes to 2504 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7591.65 rupees gained 62.7 rupees.

Courtesy: Kedia Commodities

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