Turmeric settled up 2.74% at 7424 on account of good demand from the domestic as well as overseas buyers coupled with crop concerns in Andhra Pradesh. However, the hope of increasing arrivals and huge carryover stocks restricted the further gains. Arrivals in Nizamabad and Erode were reported at 10,000 bags and 3,000 bags. Sowing of Turmeric in AP for the 2013-14 season is reported at 0.53 lakh ha, as against 0.68 lakh ha last year and a normal sowing of 0.68 lakh ha. Production in 2012-13 is reported around 45 lakh bags, down by 40-50%. Current year’s carryover stocks are estimated around 10 lakh bags. Exports between Apr-Sept 2013 stood at 38,500 tn, higher than 37,736 tn in Apr-June 2012. The market projected 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. As per the latest data compiled by commodityinsights.com, 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. In Nizamabad, a major spot market in AP, the price ended at 6501.25 rupees gained 41.05 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 9.92% to settled at 18555 while prices up 198 rupee, now Turmeric is getting support at 7309 and below same could see a test of 7195 level, And resistance is now likely to be seen at 7489, a move above could see prices testing 7555.

Trading Ideas:

Turmeric trading range for the day is 7193-7553.

Turmeric ended with gains on account of good demand from the domestic as well as overseas buyers coupled with crop concerns in Andhra Pradesh.

However, the hope of increasing arrivals and huge carryover stocks restricted the further gains.

Sowing of Turmeric in AP for the 2013-14 season is reported at 0.53 lakh ha, as against 0.68 lakh ha last year and a normal sowing of 0.68 lakh ha.

In Nizamabad, a major spot market in AP, the price ended at 6501.25 rupees gained 41.05 rupees.