Turmeric yesterday we have seen that market has moved 4.01% on the back of short covering due to firm export demand along with concern over output in the year 2012-13. The fall in acreage has lowered better output prospects. The latest report from Andhra Pradesh Agriculture Department showed that Turmeric acreage under the state as of 22 August 2012 stood at 49349 hectares, down compared with 62330 hectares reported same period last year. Rains have slightly improved in the leading cultivating regions but not as required. Rains are very less in parts of Tamil Nadu and this could hit the yield of the crop. Rains in Tamil Nadu have been 23 percent lower than average in the season until Aug. 22, the weather office data showed. Farmers slashed the area under turmeric cultivation this season following a sharp fall in prices that started last year. Lower sowing reports amidst pick up in festive domestic demand and export demand is supporting the trend even as rains in Central India is pressurizing the market sentiments. The arrivals in the Nizamabad mandi remained unchanged at 1,500 bags.  The arrivals in the Erode mandi was stable at 4,000 bags. In Nizamabad, a major spot market in AP, the price ended at 5606 rupees gained by 110.35 rupees. Market has opened at 6098 & made a low of 5990 versus the day high of 6226. The total volume for the day was at 9855 lots and the open interest was at 19700.Support for turmeric is at 6069 below that could see a test of 5911. Resistance is now seen at 6305 above that could see a resistance of 6383.

Trading Ideas:

Turmeric trading range for the day is 5911-6383.

Turmeric gained on the back of short covering due to firm export demand along with concern over output

Turmeric acreage under the state as of 22 August 2012 stood at 49349 hectares, down compared with 62330 hectares

NCDEX accredited warehouses turmeric stocks dropped by 10 tonnes to 10728 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5606 rupees gained by 110.35 rupees.