Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 19 August 2013

Turmeric yesterday settled down -1.72% at 4800 on profit booking after prices rose as sentiments further improved on weak production estimate and restricted supplies in the spot market. According to market sources, turmeric arrivals in the Nizamabad mandi stood steady at 1,500 bags and arrivals in the Erode Mandi remained unchanged at 4,000 bags. 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. In the state of Andhra Pradesh, turmeric sowing had completed in nearly 0.43 lakh hectare as on 07th of August. 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 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. The forecast of better sowing in Andhra Pradesh may pressurize turmeric prices. As per Andhra Pradesh Agriculture Department reports, acreage under turmeric in the state so far stood at 34963 hectares, 13.1 percent higher when compared to the last year. Now Turmeric is getting support at 4729 and below same could see a test of 4659 level, And resistance is now likely to be seen at 4879, a move above could see prices testing 4959.