Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 9 July 2014

Turmeric settled down -1.02% at 6596 because of profit-taking although the downside was limited due to weak monsoon rains over the southern parts of India. Prices declined last week on expectations of revival of monsoon coupled with weak demand in the physical markets on the back of poor quality crop arrivals and huge carryover stocks. In Sangli arrivals were reported at 2200 quintals, up by 200 quintals as compared to previous day. In Nizamabad arrivals were reported at 3000 quintals, lower by 1000 quintals from previous trading day. Exporters were reported active in the domestic market. According to IBIS, during June month Turmeric export reported 9533 tons as compared tonnes May month 7864 tons. Export demand mainly comes from July end after Ramzan. The price of the hybrid finger turmeric decreased as there was no upcountry demand. Sources are not receiving fresh demand from the North India, so we are placing tenders for lower price in all the four sales markets. Due to the arrival of medium and poor quality turmeric, especially the hybrid finger turmeric. Of the 3,400 bags that arrived, only 40 per cent stocks were 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. In Nizamabad, a major spot market in AP, the price ended at 6004.75 rupees gained 18.4 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 1.07% to settled at 9445 while prices down -68 rupee, now Turmeric is getting support at 6497 and below same could see a test of 6401 level, And resistance is now likely to be seen at 6729, a move above could see prices testing 6865.