Turmeric yesterday settled up 1.96% at 4992 as spot supplies declined and on fresh export demand but higher carry forward stocks and favourable weather conditions in the leading cultivating states limited the upside. Further, expectations of increase in arrivals from the major producing belts on back of adequate rainfall also impacted the sentiments. Traders anticipate present rates are on the lower side and there have been some queries on the domestic and the export front. As per market sources, timely rainfall in major turmeric producing states such as Maharashtra, Tamilnadu and Andhra Pradesh led to steady sowing progress of turmeric crop in the current season. In the state of Andhra Pradesh, turmeric sowing had completed in nearly 0.43 lakh hectare as on 07th of August. The futures prices were also pressurized by comfortable stocks in local mandies. Traders estimated the total stocks of around 60-62 lakh bags in the major mandies. This will easily meet up the local demand of turmeric in the next 5-6 months. The forecast of better sowing in Andhra Pradesh may pressurize turmeric prices. As per Andhra Pradesh Agriculture Department reports, acreage under turmeric in the state so far stood at 34963 hectares, 13.1 percent higher when compared to the last year. In Nizamabad, a major spot market in AP, the price ended at 5006 rupees dropped -10 rupees. Technically market is under short covering as market has witnessed drop in open interest by -6.06% to settled at 19225 while prices up 96 rupee, now Turmeric is getting support at 4843 and below same could see a test of 4695 level, And resistance is now likely to be seen at 5067, a move above could see prices testing 5143.

Trading Ideas:

Turmeric trading range for the day is 4687-5135.

Turmeric ended with gains as spot supplies declined and on fresh export demand.

Expectations of increase in arrivals from the major producing belts on back of adequate rainfall also impacted the sentiments

NCDEX accredited warehouses turmeric stocks gained by 20 tonnes to 8645 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5005.7 rupees dropped -10.2 rupees.