Turmeric yesterday settled up 0.48% at 5830 on increased demand from local parties as well as overseas enquiries due to inadequate stocks. Expectations of good supply in the coming time on back of good production in growing areas limited the upside. However good progress in sowing, conducive weather and higher carry-forward stocks also limited upside. The ongoing sowing operations and the good progress of the monsoon are keeping turmeric prices under pressure. The pace of sowing has helped and yields are expected to benefit from the recent rains. The concerns over the availability of water in Tamil Nadu for turmeric crop are likely to push up turmeric prices in the long term. The total turmeric acreage in Andhra Pradesh reported higher at 25937 hectares as against 22688 hectares year-on-year basis, according to the data released by the State Department of Agriculture. Rains in Central and North India have been affecting the demand adversely for quite sometime now. Traders however expect present rates to be on the lower side there are expectations of demand picking up at these rates in coming days. But expectations of better sowing this year due to good rains in the growing states have been preventing any strong recovery for the commodity rates. In Nizamabad, a major spot market in AP, the price ended at 5733 rupees gained 18 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by % to settled at while prices up 28 rupee, now Turmeric is getting support at 5775 and below same could see a test of 5721 level, And resistance is now likely to be seen at 5883, a move above could see prices testing 5937.

Trading Ideas:

Turmeric trading range for the day is 5721-5937.

Turmeric ended with gains on increased demand from local parties as well as overseas enquiries due to inadequate stocks.

Expectations of good supply in the coming time on back of good production in growing areas limited the upside.

NCDEX accredited warehouses turmeric stocks gained by 50 tonnes to 7444 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5766.65 rupees gained 171.2 rupees.