Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 30 July 2013

Turmeric yesterday settled down -2.06% at 5140 weighed by high stocks and good progress in sowing. The crop in Andhra Pradesh is expected to be good. According to the state department of Agriculture, turmeric has been sown on an area of 0.35 lakh hectares (lh) in Andhra Pradesh as of now, higher when compared to the 0.31 lh reported during the same period last year. India's turmeric production in 2012-13 period is reported around 45 lakh bags, lower by 40-50%. It is estimated that current year's carry over stocks would be around 10 lakh bags, according to the data released by the Spices Board. Exports from the country for 2012-13 period stood at 80,050 tons, marginally higher than 79,500 ton recorded in the previous year. Turmeric sowing in Andhra Pradesh so far reported at around 0.30 lakh hectares (lh), higher when compared to 0.25 lh during the same period last year. Improved sowing due to a good monsoon may pressurize prices in the near term. Despite the decline in arrivals, traders are not willing to buy the spice as they have not received any orders from upcountry and overseas buyers. This might support the further downside in the commodity prices. All India turmeric farmers association had requested Tamil Nadu Government to procure turmeric at MSP of Rs 10,000 per quintal. Turmeric cultivation usually starts in June and continues until August, and a lengthy harvesting process begins from January. Demand for the commodity is quite good as major portion is consumed by local players and annual export may be come near 80,000 tonnes. In Nizamabad, a major spot market in AP, the price ended at 5496 rupees dropped -80 rupees. Now Turmeric is getting support at 5067 and below same could see a test of 4995 level, And resistance is now likely to be seen at 5247, a move above could see prices testing 5355.