Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 28 May 2013

Turmeric yesterday we have seen that market has moved -0.78% due to dearth of strong demand by stockiest at current levels along with availability of cheap quality of turmeric in the local mandies. Normal rain at Tamil Nadu and Andhra Pradesh has impacted turmeric prices. Quality concern over warehouse stocks also reflected prices. Turmeric traders are awaiting monsoon showers and are hoping that prices may surge after the advent of rains. Monsoon is the season of accumulation and distribution of all spices and this process may support prices to some extent. The supply of cheaper turmeric varieties from Nizamabad and poor North Indian demand hurt the prospects of the spice in the past days. India's total area under turmeric has been reduced by around 20% in 2012-13. The domestic production is expected to be at 45-50 lakh bags and out of them, 37 lakh bags (80kg) are expected to be carry forward stocks. As per market, traders have not witnessed any bargain buying at current levels due to availability of cheap quality of turmeric in local mandies. Moreover, traders have also reported the weak demand of turmeric during the summer season from the northern states. This has also added some selling pressure in the turmeric market. In Nizamabad, a major spot market in AP, the price ended at 5990.9 rupees dropped by -41.7 rupees. Market has opened at 5924 & made a low of 5824 versus the day high of 5970. The total volume for the day was at 10010 lots and the open interest was at 23735. Support for turmeric is at 5811 below that could see a test of 5745. Resistance is now seen at 5957 above that could see a resistance of 6037.