Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 17 July 2014

Turmeric settled down -0.58% at 6538 due to a revival in monsoon rains in key producing southern states. Besides, poor quality of crop and better carryover stocks too weighed on the prices. Spot turmeric prices increased in Erode markets on improved quality arrivals. After some days quality turmeric arrived for sale and the traders quoted higher price and procured the turmeric to fulfil their local orders. Still they are waiting for the upcountry orders. If they receive good orders from the North India, certainly the price of the commodity will go up. The hybrid finger turmeric also increased by Rs.150 due to quality. The buyers showed special interest in buying the hybrid and all the 200 bags of hybrid turmeric were sold. Emerging spot demand, restricted arrivals of quality turmeric and next year crop concern is supporting the yellow spice prices. As per market sources, fresh arrivals of around 15-20 thousand bags of new turmeric have been reported in the major producing states such as Karnataka , Maharashtra and Andhra Pradesh. 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 6092.85 rupees dropped -73.8 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -8.86% to settled at 12400 while prices down -38 rupee, now Turmeric is getting support at 6474 and below same could see a test of 6402 level, And resistance is now likely to be seen at 6604, a move above could see prices testing 6662.