Turmeric yesterday we have seen that market has moved -0.5% on weak stock position and weak production. However, prices dipped on weak demand amid arrivals from harvested crop. 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. This is mainly due to fragile sowing in major producing states such as Andhra Pradesh and Maharashtra. Low demand prevailed in the mandis as Monsoon report remains critical for the near term trend. With reports from certain quarters of Monsoon likely to remain weak in the Southern states this year also, a Bullish trend was noted in Spices. For the last few years, most Southern states have been receiving less rains leading to the production getting adversely affected. India's area under turmeric fell by around 20% in 2012-13. Domestic production is expected to be around 45-50 lakh bags, out of which 37 lakh bags (80kg) may be considered as carry forward stock, according to the trade sources. Prices are expected to move around Rs. 7,500-8,500 per 100 kgs till May-June period and later the price movement will be based on the monsoon. There are expectations of improvement in overseas demand ahead of Ramadan. In Nizamabad, a major spot market in AP, the price ended at 6019.55 rupees dropped by -72.1 rupees. Market has opened at 5940 & made a low of 5792 versus the day high of 6000. The total volume for the day was at 12515 lots and the open interest was at 24220. Support for turmeric is at 5828 below that could see a test of 5706. Resistance is now seen at 6036 above that could see a resistance of 6122.

Trading Ideas:

Turmeric trading range for the day is 5706-6122.

Turmeric ended with losses on weak stock position and weak production.

Turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags

NCDEX accredited warehouses turmeric stocks gained by 109 tonnes to 2695 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 6019.55 rupees dropped by -72.1 rupees.