Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 2 January 2014

Turmeric dropped due to large stocks and as the approaching new supply season outweighed concerns about the quality of crop in top producer Andhra Pradesh. Large carry-forward stocks and weak overseas demand are keeping turmeric prices under pressure. Sales and arrival of turmeric in Erode fell by almost 30 per cent for want of quality varieties besides ruling cheaper at other centres. Normally, every year about 17-18 lakh bags of turmeric (each bag contains 65 kg of turmeric) arrives for sales in Erode district and 14 lakh bags would be sold. But this year the arrival decreased to 14-15 lakh bags and 10 lakh bags were sold. Such thirty per cent decrease in sales was due to the sale of turmeric in Nizamabad, Warrangal, Assam and Sangli areas and also for quality. The market sources suggested that the total stocks of the turmeric have been declined to 35-36 lakh bags against 48-51 lakh bags of the last year in the same period. This was mainly due to robust export demand of turmeric and strong domestic consumption. Moreover, weakness in overall domestic production also added some support to the prices. 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. In Unjha, a key spot market in Gujarat, jeera edged up by 28.3 rupees to end at 12741.65 rupee per 100 kg. Technically market is under long liquidation as market has witnessed drop in open interest by -4.1% to settled at 13575 while prices down -6 rupee, now Turmeric is getting support at 6497 and below same could see a test of 6385 level, And resistance is now likely to be seen at 6735, a move above could see prices testing 6861.