Turmeric on NCDEX settled up by 1.9% at 7288 on expectation of pickup in domestic demand from the upcountry traders ahead of festival season. Besides, the rally was triggered by reports of crop damage across Telangana and Andhra Pradesh, which received incessant rains during the second fortnight of September. According to news sources, over 2.5 lakh hectares of crops such as turmeric, chilli, soyabean, paddy, cotton, have been damaged. The extent of damage to turmeric is yet to be assessed. Though overall acreage under turmeric is marginally higher than last year, production is expected to fall because of lower yield. At Nizamabad market total arrivals are at 1000 quintals, up by 300 quintals from previous day’s arrivals. At Warangal market sources reported arrivals at 300 bags, down by 200 bags as compared to previous day. At Erode market, sources reported arrivals at 2500 quintals, up by 1000 quintals from previous trading day. Arrival of turmeric at Erode markets increased slightly though the prices did not improve significantly. But the sale was static with 60-65 per cent. 2,700 bags of medium and poor quality turmeric arrived for sale. Regarding the price of the turmeric, both varieties have increased at negligible level. At the Erode Turmeric Merchants Association sales yard, the finger variety went for Rs. 7,235-8,900 a quintal; the root variety Rs. 6,899-7,789. Of the arrival of 1,166 bags, 531 were sold. In Nizamabad, a major spot market in AP, the price ended at 7542.95 rupees gained 31.2 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 0.2% to settled at 9910, now Turmeric is getting support at 7184 and below same could see a test of 7078 level, And resistance is now likely to be seen at 7354, a move above could see prices testing 7418.

Trading Ideas:

Turmeric trading range for the day is 7078-7418.

Turmeric prices ended with gains on expectation of pickup in domestic demand from the upcountry traders ahead of festival season.

Besides, the rally was triggered by reports of crop damage across Telangana and Andhra Pradesh, which received incessant rains.

NCDEX accredited warehouses turmeric stocks dropped by 10 tonnes to 4051 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7542.95 rupees gained 31.2 rupees.