Turmeric yesterday we have seen that market has moved -0.85% more than half-a-percent on mounting stocks and sluggish overseas sales. Expectations of increased supplies in the next season due to higher carry-forward stocks and arrivals from new crop also weighed on sentiment. Exports to the Middle East countries have slowed down. The acreage under turmeric cultivation is lower compared with last year, but delayed rains have helped the crop. Turmeric arrivals in the Nizamabad mandi remain unchanged at 1,500 bags and arrivals in the Erode mandi slumped to 2,500 bags from 4,000 bags. As per the market sources, steady rainfall in the major turmeric producing states such as Maharashtra (Sangli and Sholapur districts) and Andhra Pradesh (Nizamabad and Rayalaseema districts) witnessed strong stockiest selling. Traders have revised the total turmeric production to 60 lakh bags from the previous estimates of 48 lakh bags. Moreover, comfortable carryover stocks of 45-46 lakh bags at the major mandies also added some selling in futures market. Turmeric has been sown in 0.57 lakh hectares in A. P as on 26/9/2012, down nearly 15% from normal area of 0.67 lakh. In Nizamabad, a major spot market in AP, the price ended at 5450 rupees dropped by -63 rupees. Market has opened at 5610 & made a low of 5530 versus the day high of 5678. The total volume for the day was at 6245 lots and the open interest was at 10415. Support for turmeric is at 5513 below that could see a test of 5447. Resistance is now seen at 5661 above that could see a resistance of 5743.

Trading Ideas:

Turmeric trading range for the day is 5447-5743.

Turmeric ended lower on mounting stocks and sluggish overseas sales.

Expectations of increased supplies in the next season due to higher carry-forward stocks weighed on sentiment

Turmeric has been sown in 0.57 lakh hectares in A. P as on 26/9/2012, down nearly 15% from normal area of 0.67 lakh.

In Nizamabad, a major spot market in AP, the price ended at 5450 rupees dropped by -63 rupees.