Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 17 January 2014

Turmeric settled down -0.5% at 6746 on sluggish demand in the spot market against adequate supplies from producing belt. Though, concerns about yield in top-producer Andhra Pradesh state limited the further losses in the commodity price. Supplies from the new season harvest have started coming into local markets in small quantities. Turmeric cultivation usually begins in the last week of May and continues until August. A lengthy harvesting process starts in January. 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 total carryover stocks of turmeric have been reduced to 40-42 lakh bags against 55 lakh bags reported last year in the same period. This was mainly due to strong export demand in local mandies. The market sources suggested that the total production of turmeric in the current year is estimated at 52 lakh bags against 70 lakh bags that were estimated in the last year. In Nizamabad, a major spot market in AP, the price ended at 5905.45 rupees gained 65.7 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 0.04% to settled at 13795 while prices down -34 rupee, now Turmeric is getting support at 6709 and below same could see a test of 6673 level, And resistance is now likely to be seen at 6801, a move above could see prices testing 6857.