Turmeric settled up 1.46% at 7220 rose on concerns about the quality and yield of the crop due to excessive rains in Andhra Pradesh, the top producer, outweighing new-season supplies and large carry-forward stocks. The Nizamabad market has been receiving around 10,000-12,000 bags (70 kg each) of turmeric from the new-season crop daily. With reports of fall in crop productivity, downtrend may be limited till high arrivals continue. With skies clearing up, a pickup in demand from North India is expected. Some demand from North India was there but poor quality arrivals have kept prices down. Reports of stockists not willing to sell at these lower levels have been there in mandis. Prospects of better sowing this year due to good rains in the growing states have been preventing any strong recovery so far. Expectations of rise in domestic demand are there from North India. Overall good rain-fall activity in growing states of AP, Karnataka and Tamil Nadu could. prevent strong upside movement. Current year production is low but stock levels from earlier years are high. As per reports from Spice Board of India, the estimated exports of Turmeric during April-December 2013 was pegged at 38500 MT, up by 2% same period previous year. In value terms, it was up by 37% at Rs 31,668.85 lakhs. In Nizamabad, a major spot market in AP, the price ended at 6438.5 rupees gained 22.6 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 0.45% to settled at 16800 while prices up 104 rupee, now Turmeric is getting support at 7119 and below same could see a test of 7017 level, And resistance is now likely to be seen at 7315, a move above could see prices testing 7409.

Trading Ideas:

Turmeric trading range for the day is 7027-7419.

Turmeric ended with gains rose on concerns about the quality and yield of the crop due to excessive rains in Andhra Pradesh

The Nizamabad market has been receiving around 10,000-12,000 bags of turmeric from the new-season crop daily.

With reports of fall in crop productivity, downtrend may be limited till high arrivals continue.

In Nizamabad, a major spot market in AP, the price ended at 6438.5 rupees gained 22.6 rupees.