Turmeric ended with losses on large stocks, weak overseas demand and approaching supplies from the new season harvest, though concerns about yield in top-producer Andhra Pradesh state restricted the downside. Supplies from the new season harvest have started coming into local markets in small quantities. Prices of turmeric in Erode markets increased as traders continued to get orders from the North and other parts of the country. The current demand is likely to increase and prices may rise further. The arrival of fine variety has resulted in sales increasing. On Wednesday, 5,500 bags of turmeric arrived and 80 per cent was sold. Sources said if quality turmeric arrives for sale, they may 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. Technically market is under fresh selling as market has witnessed gain in open interest by 2.37% to settled at 13810 while prices down -4 rupee, now Turmeric is getting support at 6703 and below same could see a test of 6647 level, And resistance is now likely to be seen at 6813, a move above could see prices testing 6867.

Trading Ideas:

Turmeric trading range for the day is 6653-6873.

Turmeric ended with losses on large stocks, weak overseas demand and approaching supplies from the new season harvest.

Supplies from the new season harvest have started coming into local markets in small quantities.

Prices of turmeric in Erode markets increased as traders continued to get orders from the North and other parts of the country.

In Nizamabad, a major spot market in AP, the price ended at 5839.75 rupees remains unchanged at0 rupees.