Turmeric settled down -3.25% at 7800 due to medium quality arrival in the spot market. Though, good demand from North India capped some losses. However, prospects of weak monsoon in July – August may affect turmeric production in rainfed areas while irrigated turmeric may not affect much. However, excess rains during the vegetative and harvesting may adversely affect the production and quality. As per Telengana Agricultural Department, till now around 36,000 ha area has been sown under turmeric vs 37,000 ha same time last year. Total 50,000 ha area is covered. Moreover, in AP, around 6100 ha area has been seeded till date vs 6000 ha last year. During 2014-15, India exported around 86,000 tons which is higher by 8500 tons than last year. In 2013-14, around 77500 tons was exported. Masala Board has fixed a target for export of 80,000 tons for 2014-15. Spot turmeric prices showed a mixed trend at Erode markets as the traders received ample number of demand. Some traders in North India have placed good number of orders with the Erode traders for the quality turmeric to be exported to other countries. But only medium variety arrived for sale and the buyers procured 70 per cent of the arrived 5,000 bags. The price of the finger turmeric was up Rs. 200 a quintal in all the markets and the root variety decreased by Rs. 100 due to quality. Technically market is under long liquidation as market has witnessed drop in open interest by -5.6% to settled at 25195 while prices down -262 rupee, now Turmeric is getting support at 7663 and below same could see a test of 7525 level, And resistance is now likely to be seen at 8033, a move above could see prices testing 8265.

Trading Ideas:

Turmeric trading range for the day is 7526-8266.

Turmeric prices ended with losses due to medium quality arrival in the spot market.

However, prospects of weak monsoon in July – August may affect turmeric production in rainfed areas while irrigated turmeric may not affect much.

NCDEX accredited warehouses turmeric stocks gained by 30 tonnes to 13502 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7559.6 rupees gained 25.6 rupees.