Turmeric yesterday settled down -0.37% at 4900 as lack of strong demand in the markets amidst high stocks and improved arrivals in the mandis kept pressure. Turmeric cultivation usually starts in the last week of May and continues until August. A lengthy harvesting process starts from January. Turmeric sowing is complete in the major growing regions and the weather is favourable for its growth. Market sentiments for Spices weakened as fall in Dollar adversely affected the export demand. Some demand from North India was there and that is likely to support prices to some extent. The total ending stocks of turmeric as on 1st September, 2013 estimated at 70 lakh bags against 55 lakh bags of last year in the same period. The market sources also added that the local mandies are currently having the sufficient carryover stocks of turmeric to meet entire domestic and export demand for the coming five months or before the commencement of new harvesting. The overall consumption of the turmeric for the next five months is estimated at 25 lakh bags. Turmeric sowing is almost complete in the leading cultivating areas and the crop is in good condition. At the spot market, Turmeric prices continued to rule flat in Erode markets as orders from North India are yet to come. Arrivals are on the rise on hopes of new orders coming, while stockists have begun to build inventorieas. In Nizamabad, a major spot market in AP, the price ended at 4942 rupees dropped -110 rupees. Now Turmeric is getting support at 4840 and below same could see a test of 4780 level, And resistance is now likely to be seen at 4940, a move above could see prices testing 4980.

Trading Ideas:

Turmeric trading range for the day is 4775-4975.

Turmeric ended with losses as lack of strong demand in the markets amidst high stocks and improved arrivals

Some demand from North India was there and that is likely to support prices to some extent.

Technically market is under fresh selling as market has witnessed gain in open interest by 2.2% to settle at 22530.

In Nizamabad, a major spot market in AP, the price ended at 4942.4 rupees dropped -109.6 rupees.