Turmeric settled down -1.88% at 7208 on profit booking after prices gained on improved local buying and a pick-up in overseas demand with improvement in quality. Stockiest are currently active in Turmeric markets. Nizamabad has seen some new crop arrivals and such arrivals are expected to increase in coming days though the difference between spot and futures is leading to a hectic activity. 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. The total carryover stocks of turmeric at the beginning of the December have been reduced to 27-28 lakh bags against 42 lakh bags reported last year in the same period. This was mainly due to strong export demand in local mandies. The arrival of new crop will increase within a couple of days. Meanwhile, traders purchased old crop in large quantity expecting good order from the first week of February. But they quoted a higher price for the old crop as the quality of the arrival was good. Traders have received firm orders from turmeric powder units. Traders and exporters are waiting for fresh upcountry orders. Technically market is under fresh selling as market has witnessed gain in open interest by 0.12% to settled at 16775 while prices down -138 rupee, now Turmeric is getting support at 7122 and below same could see a test of 7036 level, And resistance is now likely to be seen at 7332, a move above could see prices testing 7456.

Trading Ideas:

Turmeric trading range for the day is 7036-7456.

Turmeric dropped on profit booking after prices gained on improved local buying and a pick-up in overseas demand

Nizamabad has seen some new crop arrivals and such arrivals are expected to increase in coming days

The market sources suggested that the total production of turmeric in the current year is estimated at 52 lakh bags against 70 lakh bags.

In Nizamabad, a major spot market in AP, the price ended at 6397.7 rupees remains unchanged at0 rupees.