Turmeric yesterday we have seen that market has moved -2.26% as higher carry forward stocks and increasing supplies from the new season crop offset estimates of lower output. Higher supplies of the fresh crop coupled with huge carryover stocks may pressurise prices from higher levels. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. Demand from North India is likely to support the prices in coming weeks as traders expect improved trading activities in the mandis in the coming weeks. Low rainfall in Southern states of Andhra Pradesh, Karnataka and Tamil Nadu are likely to keep the production lower by 30-40% this year. As per market sources, turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags (1 bag= 70 kgs). This is mainly due to fragile sowing in major producing states such as Andhra Pradesh and Maharashtra.  The crop size in Tamilnadu is also expected to be lower and the arrivals are quite thin compared to the last year. Moreover, dearth of selling by cultivators and strong offtake by investors also propelled strong gains in turmeric market. As per market sources, the total production of turmeric has been revised lower to 45 lakh bags for the current year from the previous estimates of 55 lakh bags . India's turmeric production in 2012-13 is expected around 50 lakh bags. Production in Nizamabad is expected around 12 lakh bags. In Nizamabad, a major spot market in AP, the price ended at 6426 rupees dropped by -7.3 rupees. Market has opened at 6700 & made a low of 6530 versus the day high of 6730. The total volume for the day was at 11420 lots and the open interest was at 25275.Support for turmeric is at 6495 below that could see a test of 6413. Resistance is now seen at 6695 above that could see a resistance of 6813.

Trading Ideas:

Turmeric trading range for the day is 6413-6813.

Turmeric fell as higher carry forward stocks and increasing supplies from the new season crop offset estimates of lower output.

Higher supplies of the fresh crop coupled with huge carryover stocks may pressurise prices from higher levels.

Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states.

In Nizamabad, a major spot market in AP, the price ended at 6426 rupees dropped by -7.3 rupees.