Turmeric yesterday we have seen that market has moved 1.02% supported by some improvement in local demand and on expectations of lower output. Low rainfall in the Southern states of India, especially Andhra Pradesh, Karnataka and Tamil Nadu is likely to keep turmeric production lower by 30-40% this year. Turmeric production in 2012-13 is expected around 55 lakh bags. Production in 2011-12 is projected at historical high of 10.62 lakh tn. Turmeric traders are eying some buoyancy in spot market in coming days. The crop size in Tamilnadu is expected to be lower and the arrivals are quite thin compared to the last year. Turmeric arrivals in the Nizamabad mandi decreased to 8,000 bags from 12,000 bags and arrivals in the Erode mandi increased to 3,000 bags from 2,500 bags. Improved arrivals in some mandis were noted. But with an overall lower production expected this year. Usually turmeric exporters get bulk orders about 10 days before the Holi festival that is celebrated on a grand scale in northern States. The harvest of the new crop will commence soon and already the Number 8 variety and Mysore variety have arrived for sale. Bulk buyers, expecting orders from North India, have already procured some hundreds of bags and are polishing them. In Nizamabad, a major spot market in AP, the price ended at 5460 rupees gained by 54 rupees. Market has opened at 6250 & made a low of 6250 versus the day high of 6366. The total volume for the day was at 11880 lots and the open interest was at 27375. Support for turmeric is at 6254 below that could see a test of 6194. Resistance is now seen at 6370 above that could see a resistance of 6426.

Trading Ideas:

Turmeric trading range for the day is 6194-6426.

Turmeric gained supported by some improvement in local demand and on expectations of lower output.

Turmeric traders are eying some buoyancy in spot market in coming days.

Turmeric arrivals in Nizamabad mandi decreased to 8,000 bags and arrivals in Erode mandi increased to 3,000 bags.

In Nizamabad, a major spot market in AP, the price ended at 5460 rupees gained by 54 rupees.