Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 24 December 2013

Turmeric settled down -2.97% at 6140 triggered by higher stocks and hopes of strong productivity. Moreover, subdued demand from retailers and stockists as well as slackness in export demand also impacted the trading sentiments. The total carryover stocks of turmeric at the beginning of the December have been reduced to 40-42 lakh bags against 55 lakh bags reported last year in the same period. This was mainly due to strong export demand in local mandies. The market sources suggested that the total production of turmeric in the current year is estimated at 52 lakh bags against 70 lakh bags that were estimated in the last year. The sources added that poor rainfall in Erode during the sowing period will reduce the total production of the turmeric crop in the current year. As per the market sources, the new harvesting season of turmeric crop will begin from the end-December in some parts of Andhra Pradesh due to early plantation by farmers. The fresh arrivals of turmeric in Andhra Pradesh normally begins from mid- January. So anticipation of early harvesting of the new crop has propelled strong stockiest selling in local mandies. The market data suggested that total stocks of around 35-36 lakh bags have been reported in the major producing states. In Nizamabad, a major spot market in AP, the price ended at 5404.15 rupees dropped -83.85 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -1.59% to settled at 13010 while prices down -188 rupee, now Turmeric is getting support at 6069 and below same could see a test of 5999 level, And resistance is now likely to be seen at 6273, a move above could see prices testing 6407.