Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 23 August 2013

Turmeric yesterday settled down -1.11% at 4994 due to adequate supplies against subdued demand in the spot market. North India demand has started rising as traders expect moderate firmness to continue in the coming days. Export queries too have reportedly started picking up. Declining arrivals, overseas as well as domestic demand may support prices at lower levels. However, higher carry forward stocks and favourable weather conditions supporting the growth of the crop in leading cultivating states limited the upside. 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. According to market sources, turmeric arrivals in Nizamabad stood steady at 1,500 bags and the arrivals in the Erode Mandi remained unchanged at 4,000 bags. 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. In Nizamabad, a major spot market in AP, the price ended at 5068 rupees gained 63 rupees. Now Turmeric is getting support at 4905 and below same could see a test of 4815 level, And resistance is now likely to be seen at 5101, a move above could see prices testing 5207.