By Sam Nair
Turmeric is expected to extend its consolidation within the current range of Rs.7070/kg to Rs.6600/kg. Technically, prices are likely to breakout on the higher side in the short term and buying opportunities are expected above Rs.7070/kg.
The physical market support is steady with the arrival of new turmeric and reports indicate a strong demand for the same which is likely to support prices along with strong exports which has been significantly higher compared to last year.
Pepper has been trading in a small range this week and is expected to weaken further going ahead. Support is seen at Rs.58400/quintal and then lower at Rs.58000/quintal.
On the upside, resistance is expected at Rs.63000/kg. The physical market is expecting much lesser crop this season due to the failed monsoons and demand is also expected to take a hit with the ready availability of stocks in the world market.
Rubber declined sharply over the past two weeks, losing almost 13% from its highs. The recent recovery in prices from support at Rs.14400/quintal is expected to face resistance at Rs.15400/quintal. Prices are expected to resume the downtrend going ahead, we expect Rs.13800/quintal as the next key level in Rubber.
The recent decline in prices were triggered by reports that Thailand is selling rubber stocks which were previously held in storage, the quick influx of stocks has been negative for prices over the past few weeks. With the resumption of tapping in major producing regions, prices are expected to weaken further next week.
(Sam Nair is Head of Commodities Research, Celebrus Commodities Limited)