Turmeric yesterday we have seen that market has moved -0.71% due to higher carryforward stocks and subdued overseas demand. Turmeric seen under pressure on account of higher stocks with farmers, coupled with huge carryover stocks. There are expectations that present rates are low and possibilities of pick up in demand is there in coming days. A leading cultivator and trader from Erode said that, turmeric prices tumbled due to sluggish demand and tight financial position of traders ahead of the school, college openings. Normally, most spices trades lower in May, due the heat and lack of much participation from north Indian traders in the market. He added, best quality prices dipped Rs 1,500 per quintal in the last one week to Rs 10,500 per quintal in the Erode mandi. Turmeric traders are eyeing the arrival of monsoon, as it's crucial for the sowing. The commodity would trade higher side in June second week onwards, on expected pick up in the demand against weak production last year. 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. 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 5976.2 rupees dropped by -14.7 rupees. Market has opened at 5870 & made a low of 5802 versus the day high of 5894. The total volume for the day was at 10380 lots and the open interest was at 22080. Support for turmeric is at 5794 below that could see a test of 5752. Resistance is now seen at 5886 above that could see a resistance of 5936.

Trading Ideas:

Turmeric trading range for the day is 5752-5936.

Turmeric fell due to higher carryforward stocks and subdued overseas demand.

Turmeric seen under pressure on account of higher stocks with farmers, coupled with huge carryover stocks.

NCDEX accredited warehouses turmeric stocks gained by 120 tonnes to 3210 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5976.2 rupees dropped by -14.7 rupees.