Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 12 May 2014

Turmeric settled down -2.15% at 6648 as the damage to crops from recent showers in growing belts of Southern India was negligible. Spot turmeric prices in Erode declined on account of poor quality arrivals due to rain. Most of the arrivals were of medium variety and no fine variety turmeric arrived for sale. The traders quoted lower price and purchased 1,400 bags and the stockists purchased 900 bags. Only 5,000 bags arrived for sale. Because of the closure of Nizamabad turmeric market for the past few days, the upcountry traders are placing few orders with Erode merchants. So the local traders prefer quality turmeric. Because of the arrival of 300 bags of fine variety hybrid root turmeric, the traders quoted higher price and purchased all the quantity at Rs. 7,374 a quintal which was Rs. 200 more of previous sale. The finger variety decreased Rs. 100-300 while the root variety was down Rs. 200 a quintal. 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 2013-14 is reported around 40 lakh bags, down by 10-15%. Exports between Apr-Dec 2013 stood at 58,000 tn, higher than 49,526 tn in Apr-Dec 2012. 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. Technically market is under fresh selling as market has witnessed gain in open interest by 20.69% to settled at 12280 while prices down -146 rupee, now Turmeric is getting support at 6545 and below same could see a test of 6441 level, And resistance is now likely to be seen at 6819, a move above could see prices testing 6989.