Turmeric settled flat as the prospects of increased production and higher stocks from the old crop weighed on prices. 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. New crop arrivals and huge carryover stocks may cap sharp gains. However, concern about the yield of the crop due to excessive rains in top producer Andhra Pradesh limited the downside. The total carryover stocks of turmeric at the beginning of the December 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. 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 5937.5 rupees gained 61.5 rupees. Now Turmeric is getting support at 6667 and below same could see a test of 6615 level, And resistance is now likely to be seen at 6781, a move above could see prices testing 6843.

Trading Ideas:

Turmeric trading range for the day is 6619-6847.

Turmeric settled flat as the prospects of increased production and higher stocks from the old crop weighed on prices.

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

However, concern about the yield of the crop due to excessive rains in top producer Andhra Pradesh limited the downside.

In Nizamabad, a major spot market in AP, the price ended at 5937.5 rupees gained 61.5 rupees.