Turmeric on NCDEX settled down by -0.96% at 7246 on profit booking on limited demand at the spot market. Though, some losses were capped on expectation of heavy rains in the Turmeric growing areas of Tamil Nadu, Andhra and Telengana. Meanwhile, expectations of a bigger crop compared to last year may too weigh the market sentiments. India produced less turmeric during 2015-16 due to adverse weather conditions and stocks have plunged due to fag-end of the season. New crop is likely to pour in by January. Turmeric prices are seen rising in coming days due to declining stocks at NCDEX accredited warehouses. Turmeric sowing has been completed and output is expected by bumper as standing crop is pest free due to favourable weather conditions. India exported about 51,147 ton in 2016/17 until August which is up by 32% compared to last year in the corresponding period of 38,761 ton, as per the data released by Department of Commerce. Export grew due to good export demand from Iran and the USA. Spot turmeric prices increased as local traders received some upcountry demand. Arrivals increased to 900 bags at all the markets and 65 per cent was sold. Almost all the medium variety turmeric kept for sale were sold. At the Erode Turmeric Merchants Association, the finger variety went for Rs. 7,549-8,711 a quintal; the root variety Rs. 7,389-7,899. In Nizamabad, a major spot market in AP, the price ended at 7590 rupees dropped -40 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -3.54% to settled at 7360 while prices down -70 rupee, now Turmeric is getting support at 7202 and below same could see a test of 7156 level, And resistance is now likely to be seen at 7314, a move above could see prices testing 7380.

Trading Ideas:

Turmeric trading range for the day is 7156-7380.

Turmeric prices dropped on profit booking on limited demand at the spot market.

Though, some losses were capped on expectation of heavy rains in the Turmeric growing areas of Tamil Nadu, Andhra and Telengana.

Turmeric prices are seen rising in coming days due to declining stocks at NCDEX accredited warehouses.

In Nizamabad, a major spot market in AP, the price ended at 7590 rupees dropped -40 rupees.