Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 9 January 2014

Turmeric settled down -0.61% at 6810 due to large stocks and the approaching new supply season though downside was limited supported by concerns about the quality of crop in top producer Andhra Pradesh on excessive rains and on local demand. Turmeric cultivation usually begins in the last week of May and continues until August. A lengthy harvesting process starts from January. Export demand and crop concern in Andhra Pradesh is supporting the prices. Turmeric prices rose in Erode markets as upcountry orders continued to flow. Local traders and exporters have received good upcountry orders; so they are buying the turmeric quoting a higher price. They will receive orders till Sankaranti but orders may decrease a few days after that. Until then, they will receive fresh orders for both new and old crops. The medium and quality turmeric arrived for sale. Almost, the entire lot of quality turmeric was purchased by traders. Due to the arrival of fine variety hybrid turmeric, its prices increased by Rs 300 a quintal. The root variety increased by Rs 200 and other varieties also by Rs 200. 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. In Nizamabad, a major spot market in AP, the price ended at 5893.2 rupees gained 32.5 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -0.75% to settled at 13820 while prices down -42 rupee, now Turmeric is getting support at 6739 and below same could see a test of 6669 level, And resistance is now likely to be seen at 6905, a move above could see prices testing 7001.