Commodity Trading Tips for Turmeric by KediaCommodity

TurmericTurmeric yesterday we have seen that market has moved -1.08% on heavy selling at higher levels due to steady arrivals in the local mandis from strong stock levels amid weak demand. Demand is sluggish because the crop condition is good and an above average crop is expected next year. The acreage under turmeric cultivation is lower compared with last year, but delayed rains have helped the growth of the crop. 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. Sources 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. According to market sources, turmeric price in the Nizamabad mandi stood at Rs 5,400 per quintal, down by Rs 200 per quintal and the arrivals decreased to 1,000 bags from 1,300 bags. Turmeric price quoted in the Erode mandi stood at Rs 5,400 per quintal, down by Rs 100 per quintal and arrivals slumped to 4,000 bags from 5,000 bags. The Salem variety was trading at Rs 5,700 per quintal, down by Rs 100 per quintal. In Nizamabad, a major spot market in AP, the price ended at 5285.4 rupees dropped by -3.7 rupees. Market has opened at 5564 & made a low of 5502 versus the day high of 5600. The total volume for the day was at 3220 lots and the open interest was at 13755.Support for turmeric is at 5477 below that could see a test of 5441. Resistance is now seen at 5575 above that could see a resistance of 5637.

Trading Ideas:

Turmeric trading range for the day is 5441-5637.

Turmeric fell because of higher stocks and sluggish demand from overseas buyers.

Demand is sluggish because the crop condition is good and an above average crop is expected next year.

Sources have revised the total turmeric production to 60 lakh bags from the previous estimates of 48 lakh bags.

In Nizamabad, a major spot market in AP, the price ended at 5285.4 rupees dropped by -3.7 rupees.