Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 15 May 2013

Turmeric yesterday we have seen that market has moved -0.55% due to weak export and local demand with higher carry-forward stocks weighing on sentiment. Overseas demand is weak as buyers are expecting a further drop in prices to buy at lower levels. Weak exports data coupled with higher supplies of the fresh crop and huge carry-over stocks may pressurise prices. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. Turmeric arrivals slumped to 7,000-8,000 bags in Nizamabad, from 15,000-20,000 bags in the previous week. Meanwhile, arrivals had fallen to 3,500-4,000 bags from 7000-8000 bags in the Erode markets in the prior weeks. Weak arrivals due to low crop during the current year amid bargain buying is likely to support the up trend in the turmeric prices. Indian exports had gradually picked up from an average of 48000-50000 tons to over 65000-79500 tons in the last two years. 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 5977.2 rupees dropped by -9.7 rupees. Market has opened at 5850 & made a low of 5776 versus the day high of 5890. The total volume for the day was at 8165 lots and the open interest was at 24390. Support for turmeric is at 5775 below that could see a test of 5719. Resistance is now seen at 5889 above that could see a resistance of 5947.