Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 26 July 2013

Turmeric yesterday settled down -3.05% at 5400 on mounting stocks, a fall in overseas demand and on good progress in sowing. The monsoon's progress is good this season. Also carry-forward stocks are very high, all these factors are keeping turmeric prices under pressure. The pace of sowing has helped and yields are expected to benefit from recent rains. Rains in North India continued to adversely affect the demand. Overall sentiments remained weak as rains in AP also affected the demand adversely with some more short term dips not being ruled out. The concerns over the availability of water in Tamil Nadu for turmeric crop are likely to push up turmeric prices in the long term. The total turmeric acreage in Andhra Pradesh reported higher at 25937 hectares as against 22688 hectares year-on-year basis, according to the data released by the State Department of Agriculture. Turmeric sowing in Andhra Pradesh so far reported at around 0.30 lakh hectares (lh), higher when compared to 0.25 lh during the same period last year. Improved sowing due to a good monsoon may pressurize prices in the near term. Despite the decline in arrivals, traders are not willing to buy the spice as they have not received any orders from upcountry and overseas buyers. All India turmeric farmers association had requested Tamil Nadu Government to procure turmeric at MSP of Rs 10,000 per quintal. In Nizamabad, a major spot market in AP, the price ended at 5572 rupees dropped -66 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -6.05% to settled at 15850 while prices down -170 rupee, now Turmeric is getting support at 5309 and below same could see a test of 5219 level, And resistance is now likely to be seen at 5535, a move above could see prices testing 5671.