Turmeric settled down -0.84% at 7276 on a rise in the new season crop. 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. Prices on turmeric futures increased. Arrival and sale at the Nizamabad market in Andhra Pradesh increased. Local traders quoted higher price and procured over 2,500 bags against the arrival of 4,000 bags. 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. In Nizamabad, a major spot market in AP, the price ended at 6540.9 rupees dropped -1.1 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -1.36% to settled at 17075 while prices down -62 rupee, now Turmeric is getting support at 7229 and below same could see a test of 7183 level, And resistance is now likely to be seen at 7333, a move above could see prices testing 7391.

Trading Ideas:

Turmeric trading range for the day is 7185-7393.

Turmeric ended with losses on a rise in the new season crop.

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.

In Nizamabad, a major spot market in AP, the price ended at 6540.9 rupees dropped -1.1 rupees.