Turmeric yesterday we have seen that market has moved -3.98% weighed by weak exports, higher carryforward stocks and supplies from the new season crop. Supplies are moderate in the local markets but demand from local traders and exporters is weak. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. Weak demand, higher arrivals and good monsoon prospect reports, continued to hurt turmeric prices in the market. Markets, however would await the reports on the sectoral distribution of rainfall in the southern states. Low rainfall activities in the southern states of Andhra Pradesh, Karnataka and Tamil Nadu are likely to keep the production lower by 30-40% this year. Weak demand, higher arrivals and good monsoon prospect reports, continued to hurt turmeric prices in the market. Markets, however would await the reports on the sectoral distribution of rainfall in the southern states. Low rainfall activities in the southern states of Andhra Pradesh, Karnataka and Tamil Nadu are likely to keep the production lower by 30-40% this year. Turmeric arrivals in the Nizamabad mandi stood at 4,000 bags and arrivals in the Erode mandi were reported at 4,000 bags. With lower production expected this year, sentiments are likely to remain positive in the near term once demand for the new crop starts picking up. Expectations are that production may be lower by 40-50%. There are reports of some crop damage in Erode region. Turmeric production in 2012-13 is expected around 45 lakh bags. In Nizamabad, a major spot market in AP, the price ended at 6009.1 rupees dropped by -110.4 rupees. Market has opened at 6134 & made a low of 5932 versus the day high of 6160. The total volume for the day was at 12550 lots and the open interest was at 28530. Support for turmeric is at 5856 below that could see a test of 5780. Resistance is now seen at 6084 above that could see a resistance of 6236.

Trading Ideas:

Turmeric trading range for the day is 5780-6236.

Turmeric fell weighed by weak exports, higher carryforward stocks and supplies from the new season crop.

Supplies are moderate in the local markets but demand from local traders and exporters is weak.

NCDEX accredited warehouses turmeric stocks gained by 198 tonnes to 2023 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 6009.1 rupees dropped by -110.4 rupees.