Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 6 January 2014

Turmeric settled up 0.89% at 6822 supported by concerns about the quality of crop in top producer Andhra Pradesh on excessive rains and on local demand. Though, large carry-forward stocks and the approaching new season supply restricted the further gains. The new turmeric crop is expected to arrive in Erode markets before the end of the week. Though growers did not get remunerative price for their produce last year following poor sales, they have raised turmeric in large tracts of land. Fresh Number 8 variety turmeric will arrive for sale in a day or two. Last year, due to the adverse weather conditions the area under turmeric declined. But many farmers sunk bore wells and cultivated turmeric to fetch a better price. If the fine variety arrives for sale, traders will quote a higher price. Farmers were hoping that prices will increase and at least 75 per cent of the produce on offer would be bought. So, they brought 2,500 bags. Traders also quoted higher price, though only medium and poor quality were on offer. Only 45 per cent of the offerings was bought. 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. Technically market is under short covering as market has witnessed drop in open interest by -0.23% to settled at 13130 while prices up 60 rupee, now Turmeric is getting support at 6720 and below same could see a test of 6618 level, And resistance is now likely to be seen at 6932, a move above could see prices testing 7042.