Turmeric yesterday settled up 0.66% at 5794 on slight short covering amid drop in spot supplies though upside was limited due to good progress in sowing and subdued local demand amid mounting stocks. Spot supplies have declined as the season has drawn to a close and farmers are busy planting. Sowing is good so far because of favourable weather conditions. Yield is expected to remain higher this season on good rains at the time of sowing. Turmeric cultivation usually starts in June and continues until August. A lengthy harvesting process begins in January. Rains in Central and North India affected the demand adversely. Traders however expect present rates to be on the lower side there are expectations of demand picking up at these rates in coming days. All India turmeric farmers association had requested Tamil Nadu Government to procure turmeric at MSP of Rs 10,000 per quintal. The association added, being a seasonal crop, the sowing of the spice is expected to be lower in major producing belts in the current year due to water scarcity in Andhra and Karnataka etc. Turmeric cultivation usually starts in June and continues until August, and a lengthy harvesting process begins from January. Demand for the commodity is quite good as major portion is consumed by local players and annual export may be come near 80,000 tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 1.28% to settled at 20915 while prices up 38 rupee, now Turmeric is getting support at 5739 and below same could see a test of 5685 level, And resistance is now likely to be seen at 5843, a move above could see prices testing 5893.

Trading Ideas:

Turmeric trading range for the day is 5687-5895.

Turmeric ended with gains on slight short covering amid drop in spot supplies

Spot supplies have declined as the season has drawn to a close and farmers are busy planting.

NCDEX accredited warehouses turmeric stocks gained by 227 tonnes to 7315 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5659.8 rupees remains unchanged at0 rupees.