Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 29 March 2012

Turmeric yesterday we have seen that market has moved -0.84% as low demand and regular rise in arrivals of the new crop pressurized the prices. With increased arrivals, selling pressure likely to continue in short term till exports pick up. Short term trend looks weak till exports pick up as per traders. Holding of stocks by Stockists however could support the rates in coming weeks and expectations of exports picking up in coming weeks too could support prices. Higher production prospects and better stocks could however keep pressure on prices as markets trade with high volatility. Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January. High moisture content in the current crop kept demand low and thus kept pressure on the market prices. With an expected 5-6 lakh bags of old stocks with farmers, there are expectations of higher arrivals of these stocks in the markets before new crop arrivals. Turmeric output in Andhra Pradesh, India's top producer of the spice, is likely to rise 36 percent on year to 83,000 tonnes in 2012 due to an expansion in acreage. In Nizamabad, a major spot market in AP, the price ended at 3833.35 rupees dropped by -1.2 rupees. Market has opened at 4294 & made a low of 4232 versus the day high of 4300. The total volume for the day was at 4985 lots and the open interest was at 21140.Support for turmeric is at 4224 below that could see a test of 4194. Resistance is now seen at 4292 above that could see a resistance of 4330.