Turmeric prices gained on anticipation of rising physical as well as export demand at the spot market. However upside seen limited on higher turmeric output due to good sowing and favorable weather conditions at the producing belts. Turmeric output is seen higher at 7 million bags thanks to higher sowing and favorable weather conditions. Prevailing high prices encouraged farmers to plant more turmeric this year. Expectations of increasing production in coming harvesting season and lowering export demand in recent months are putting pressure on turmeric prices at higher levels. Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year. 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. At Salem market total arrivals are at 1 quintal, unchanged as compared to previous day’s arrival. At Duggirala market traders reported arrivals at 311 quintals, lower by 365 quintals from previous trading day. At Erode market arrivals were reported at 2000 quintals, lower by 1000 quintals as against previous day. Technically market is under short covering as market has witnessed drop in open interest by -0.51% to settled at 12775 while prices up 2 rupee, now Turmeric is getting support at 6605 and below same could see a test of 6589 level, And resistance is now likely to be seen at 6643, a move above could see prices testing 6665.

Trading Ideas:

Turmeric trading range for the day is 6588-6664.

Turmeric prices gained on anticipation of rising physical as well as export demand at the spot market.

However upside seen limited on higher turmeric output due to good sowing and favorable weather conditions at the producing belts.

Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year.

In Nizamabad, a major spot market in AP, the price ended at 7292.85 rupees remains unchanged at0 rupees.