Turmeric yesterday we have seen that market has moved 0.66% on short covering at the lower levels amidst some pick up in demand but high production and stock levels prevented upside movement. Reports indicate exports likely to pick up in the coming weeks as the present rates are considered low. However, reports of better production prospects, high stocks and higher arrivals could keep prices from rising a lot in the coming weeks. Sentiments have firmed up on hopes of a likely drop in sowing area. Farmers have seen very poor prices this year and this would discourage them from sowing. India's monsoon rainfall was 36 percent below average in the week to June 6, the weather office said on Thursday, after the seasonal rains missed their usual arrival date of June 1 in south India. Turmeric is planted between June and August and the crop takes about nine months to harvest. Prices have slumped more than 30 percent since December due to a bumper output of 8.5 million to 8.8 million bags of 70 kg each in 2012, up from 6.9 million to 7 million bags the year before. The arrivals in the Nizamabad mandi stood steady at 4,500 bags. The arrivals in the Erode mandi stood steady at 8,000 bags. In Nizamabad, a major spot market in AP, the price ended at 3478.7 rupees dropped by -10.7 rupees. Market has opened at 3674 & made a low of 3652 versus the day high of 3716. The total volume for the day was at 7660 lots and the open interest was at 37380.Support for turmeric is at 3649 below that could see a test of 3619. Resistance is now seen at 3713 above that could see a resistance of 3747.

Trading Ideas:

Turmeric trading range for the day is 3619-3747.

Turmeric prices ended higher on short covering at the lower levels amidst some pick up in demand

Reports indicate exports likely to pick up in the coming weeks as the present rates are considered low.

NCDEX accredited warehouses turmeric stocks gained by 100 tonnes to 7930 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 3478.7 rupees dropped by -10.7 rupees.