Turmeric yesterday we have seen that market has moved 0.28% on bargain buying after hitting their lowest level in more than three years last week, although arrival pressure and an estimated increase in output this year weighed. The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acreage from the high rates is stated the reason for the rise in expected production as per traders. 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. Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April 2011- Jan 2012 have risen by 69% to 67000 MT in 2011-12 from 39600 MT in 2010-11 same period. In Nizamabad, a major spot market in AP, the price ended at 3290.25 rupees dropped by -26.5 rupees. Market has opened at 3550 & made a low of 3540 versus the day high of 3598. The total volume for the day was at 8680 lots and the open interest was at 29020.Support for turmeric is at 3539 below that could see a test of 3511. Resistance is now seen at 3597 above that could see a resistance of 3627.

Trading Ideas:

Turmeric trading range for the day is 3511-3627.

Turmeric gained on bargain buying after hitting their lowest level in more than three years last week

Stockists bought over 10,000 bags of turmeric, as they expect prices to rise.

NCDEX accredited warehouses turmeric stocks gained by 370 tonnes to 4623 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3290.25 rupees dropped by -26.5 rupees.