Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 8 January 2014

Turmeric settled up 0.32% at 6860 recovering on late short covering after prices seen under pressure due to large stocks from the old crop, approaching supplies from the new season crop and lower-than-expected overseas demand. 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. 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 Nizamabad, a major spot market in AP, the price ended at 5860.7 rupees gained 7.6 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 3.74% to settled at 13880 while prices up 22 rupee, now Turmeric is getting support at 6725 and below same could see a test of 6591 level, And resistance is now likely to be seen at 6953, a move above could see prices testing 7047.