Turmeric yesterday we have seen that market has moved 1.5% on short covering after prices dropped 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. 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 Andhra Pradesh as on 29 September 2012, down nearly 15% from normal area of 0.67 lakh. Turmeric arrivals in the Nizamabad mandi decreased to 1,000 bags from 1,300 bags and arrivals in the Erode mandi slumped to 4,000 bags from 5,000 bags. In Nizamabad, a major spot market in AP, the price ended at 5289.1 rupees dropped by -110.9 rupees. Market has opened at 5438 & made a low of 5438 versus the day high of 5620. The total volume for the day was at 5265 lots and the open interest was at 13175. Support for turmeric is at 5457 below that could see a test of 5357. Resistance is now seen at 5639 above that could see a resistance of
5721.

Trading Ideas:

Turmeric trading range for the day is 5357-5721.

Turmeric gained on short covering after prices dropped due to steady arrivals from strong stock levels amid weak demand

The acreage under turmeric cultivation is lower compared with the last year, but delayed rains have helped the crop

NCDEX accredited warehouses turmeric stocks dropped by 735 tonnes to 8790 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5289.1 rupees dropped by -110.9 rupees.