Turmeric yesterday we have seen that market has moved -0.86% on mounting stocks and subdued demand from local traders and exporters. Overseas demand is very poor and unlikely to recover in the coming days as exporters are awaiting a further fall in prices. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. 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. India is biggest producer, consumer and exporter of turmeric in the world. India's export destinations are primarily the Middle East countries, EU countries and the ASEAN countries. India exported 79,500 tonnes of turmeric with Rs 73,434.40 Lakh during 2011-2012 year. Area came down in Andhra Pradesh, Tamil Nadu and Maharashtra. The delayed monsoon and lower prices last year, lead to farmers diverting to some other profitable crop and yield also dipped. In Nizamabad, a major spot market in AP, the price ended at 5942 rupees dropped by -35.2 rupees. Market has opened at 5832 & made a low of 5752 versus the day high of 5878. The total volume for the day was at 6805 lots and the open interest was at 24935. Support for turmeric is at 5731 below that could see a test of 5679. Resistance is now seen at 5857 above that could see a resistance of 5931.

Trading Ideas:

Turmeric trading range for the day is 5679-5931.

Turmeric fell on mounting stocks and subdued demand from local traders and exporters.

Overseas demand is very poor and unlikely to recover in the coming days as exporters are awaiting a further fall

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 5942 rupees dropped by -35.2 rupees.