Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 13 August 2013

Turmeric ended with lower circuit on expectations of increase in arrivals from the major producing belts. Water logging in some areas is expected to cause damage to the crop. Prices should recover from these levels. Concerns over the quality of the crop in some areas due to excess rains helped prices in last some session. With skies slowly clearing up in some parts of North India also, the demand in coming weeks is likely to rise-as per market sources. As per market sources, timely rainfall in major turmeric producing states such as Maharashtra, Tamilnadu and Andhra Pradesh led to steady sowing progress of turmeric crop in the current season. The major areas of Erode have already completed 40% of their sowing, while Maharashtra has completed 45-50% of their sowing for the current years. The futures prices were also pressurized by comfortable stocks in local mandies. Traders estimated the total stocks of around 60-62 lakh bags in the major mandies. This will easily meet up the local demand of turmeric in the next 5-6 months. As per market sources, timely rainfall in major turmeric producing states such as Maharashtra, Tamilnadu and Andhra Pradesh reported steady sowing progress of turmeric crop in the current years. The major areas of Erode have already completed 40% of their sowing, while Maharashtra has completed 45-50% of their sowing for the current years. Moreover, better crop condition due to availability of sufficient water in these states might also result to better productivity in the current year. In Nizamabad, a major spot market in AP, the price ended at 5088 rupees dropped -45 rupees. Now Turmeric is getting support at 4678 and below same could see a test of 4604 level, And resistance is now likely to be seen at 4900, a move above could see prices testing 5048.