Turmeric yesterday we have seen that market has moved -1.04% on heavy selling at higher levels due to steady arrivals in the local mandis from strong stock levels amid weak demand. Expectations of higher supplies in the next season due to higher carry-forward stocks and fresh crop arrivals also weighed on sentiment. Supplies are expected to increase from January-February because of arrivals from the new crop and high old stocks. Farmers are also clearing off their old stocks ahead of new supplies. The acreage under turmeric cultivation is lower compared with the last year, but delayed rains have helped the growth of the crop. Turmeric price quoted in the Erode mandi was stable at Rs 5,500 per quintal and arrivals jumped to 4,000 bags from 2,500 bags. The Salem variety traded steady at Rs 6,000 per quintal. 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. Turmeric arrivals in the Nizamabad mandi increased to 1,700 bags from 1,500 bags and arrivals in the Erode mandi jumped to 4,000 bags from 2,500 bags. In Nizamabad, a major spot market in AP, the price ended at 5400 rupees dropped by -50 rupees. Market has opened at 5572 & made a low of 5460 versus the day high of 5588. The total volume for the day was at 8130 lots and the open interest was at 12680.Support for turmeric is at 5447 below that could see a test of 5389. Resistance is now seen at 5575 above that could see a resistance of 5645.

Trading Ideas:

Turmeric trading range for the day is 5389-5645.

Turmeric dropped on heavy selling at higher levels due to steady arrivals in the local mandis from strong stock levels

Expectations of higher supplies in the next season due to higher carry-forward stocks and fresh crop arrivals weighed

NCDEX accredited warehouses turmeric stocks dropped by 404 tonnes to 10664 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5400 rupees dropped by -50 rupees.