Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 16 June 2014

Turmeric settled up 2.65% at 6348 due to pick-up in domestic demand in the spot market. Furthermore, limited stocks position in the physical market also influenced the turmeric prices. In Sangli estimated market supply was at 1500 quintals, down by 700 quintals from previous trading day. In Nizamabad arrivals were reported at 2500 quintals, up by 500 quintals from previous trading day. Due to lack of upcountry demand, turmeric prices declined along with sales. Traders in Erode are waiting for upcountry demand, so they are buying limited number of turmeric bags. Further, only medium quality turmeric is arriving for sale. Stockists bought about 400 bags and there is no chance for improvement in prices now. The price of other finger variety turmeric is stable at Rs. 6,070-6,313. Of the 2,500 bags that arrived, only 45 per cent was sold. 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. India exported turmeric of 50,500 tonnes for 408.28 crore during the period April to November 2013, jumped 11% and 41% respectively in volume and value of exports over the same period last year. In Nizamabad, a major spot market in AP, the price ended at 5825 rupees gained 59.1 rupees. Technically market is under short covering as market has witnessed drop in open interest by -13.33% to settled at 10895 while prices up 164 rupee, now Turmeric is getting support at 6204 and below same could see a test of 6060 level, And resistance is now likely to be seen at 6440, a move above could see prices testing 6532.