Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 20 August 2013

Turmeric yesterday settled up 1.83% at 4890 as a rise in domestic as well as export demand in the spot market on reduced prices supported prices. Further, restricted supplies as well as some overseas enquiries too influenced the commodity prices. Traders anticipate present rates are on the lower side and there have been some queries on the domestic and the export front. 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. 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. As per trade source, turmeric exports in 2013-14 year is estimated to be flat in terms of volume at 75000-80000 tons, but revenue may rise 20-30 percent to 6.5-7 bn Rupees. According to the state department of Agriculture, turmeric has been sown on an area of 0.35 lakh hectares (lh) in Andhra Pradesh 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%. In Nizamabad, a major spot market in AP, the price ended at 5016 rupees dropped -55 rupees. Now Turmeric is getting support at 4797 and below same could see a test of 4705 level, And resistance is now likely to be seen at 4967, a move above could see prices testing 5045.