Turmeric settled flat supported by thin spot supplies and steady demand though mounting stocks and exports weighed on sentiment. Domestic supplies are thin but prices are unlikely to gain sharply because stocks are very high. Turmeric arrivals in the Nizamabad mandi remained unchanged at 800 bags and arrivals in the Erode mandi stood steady 5,000 bags. Lack of demand from the Festive season on North India amidst higher stocks in the mandis have been pressurizing the prices. But traders are expecting demand to pick up in coming weeks as current rates are considered low. A rise in domestic demand and export demand could support market sentiments. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags in 2010-11. Erode is expected to produce 55 lakh bags of turmeric a rise of 29% as compared to previous year. According to Spices Board of India, exports of Turmeric in April 2012 increased by 1% at 7,300 tn as compared to 7,230 tn in April 2011. Pickup in demand from North-India helped the sentiments to remain up. Demand to pick up in coming weeks as the present rates are considered low. In Nizamabad, a major spot market in AP, the price ended at 4961.35 rupees gained by 30.35 rupees. Market has opened at 5138 & made a low of 5092 versus the day high of 5180. The total volume for the day was at 5115 lots and the open interest was at 9555.Support for turmeric is at 5087 below that could see a test of 5045. Resistance is now seen at 5175 above that could see a resistance of 5221.

Trading Ideas:

Turmeric trading range for the day is 5045-5221.

Turmeric settled flat supported by thin spot supplies and steady demand though mounting stocks and exports weighed

Domestic supplies are thin but prices are unlikely to gain sharply because stocks are very high.

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 9050 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 4961.35 rupees gained by 30.35 rupees.