Commodity Trading Tips for Turmeric by Kedia Commodity

Ajay Kumar Kedia 26 August 2013

Turmeric settled up 1.2% at 5064 as a decline in the spot supplies and export demand supported buying offsetting higher carry forward stocks. Export demand is supportive, but the local buying is still below expectations. It is seen picking up ahead of the festival. Sowing activities for turmeric has almost completed in the leading cultivating areas and the crop is in a good condition. Good progress in sowing due to favourable weather in growing areas also impacted the sentiments. 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. 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. Turmeric arrivals in the Nizamabad mandi decreased to 1,500 bags from 2,000 bags and arrivals in the Erode Mandi stood at 8,000 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. Technically market is under short covering as market has witnessed drop in open interest by -6.77% to settled at 17080 while prices up 60 rupee, now Turmeric is getting support at 4995 and below same could see a test of 4927 level, And resistance is now likely to be seen at 5151, a move above could see prices testing 5239.