Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 27 June 2012

Turmeric yesterday traded with the positive node and settled 1.01% up at 4190 in the line of expectation also support seen due to a likely drop in the area under cultivation this season following a sharp fall in prices. A delay in the monsoon, which could impact sowing operations, also aided the upside. Farmers are expected to cut the area under turmeric cultivation as prices of the commodity have fallen more than 30% since the start of the year. Area covered under Turmeric in A. P. in 2011 season was 0.68 lakh hectares. This year area is expected to decline eyeing steep fall in the prices in the last few months. A delay in the monsoon, which could impact sowing operations, also supported prices. Farmers are expected to cut the area under turmeric cultivation as prices of the commodity have fallen more than 30 percent since the start of the year. Exports of turmeric during April 2011 to January 2012 rose 69% to 67k tns as compared to 39,600 tonnes in the same period previous year. Carry-forward stocks have been higher because of a bumper crop last year after farmers significantly expanded the area under cultivation. The target set by the Spices board has already been achieved and has touched new historical high of 67,000 tonnes during Apr 2011 to Jan 2012. At Nizamabad, a key market in Andhra Pradesh, spot turmeric gained 34 rupees to
3,653 rupees per 100 kg. For today's session market is looking to take support at 4136, a break below could see a test of 4082 and whereas resistance is now likely to be seen at 4238, a move above could see prices testing
4286.