Turmeric settled down -0.8% at 6486 fell due to a revival in monsoon rains in key producing southern states. Emerging spot demand, restricted arrivals of quality turmeric and next year crop concern limiting the downside. Monsoon is critical for the sowing of the commodity. IMD had projected weak rainfall this year. Better carry over stocks and poor quality of the crop is limiting the upside. In Erode arrivals were reported at 4000 quintals, steady as against previous day’s arrival. In Sangli total arrivals are at 1000 quintals, steady as against previous day’s arrival.

In Nizamabad total arrivals are at 2000 quintals, lower by 1000 quintals as against previous day. Lower rains in AP and TN have already adversely affected the sowing for the new crop there. Some demand is likely to come in for all grades at lower levels as stockiest are likely to hoard and sale when exporters move into the market. 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 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 6120 rupees gained 27.15 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -3.15% to settled at 12000, now Turmeric is getting support at 6418 and below same could see a test of 6356 level, And resistance is now likely to be seen at
6574, a move above could see prices testing 6668.

Trading Ideas:

Turmeric trading range for the day is 6358-6670.

Turmeric prices dropped fell due to a revival in monsoon rains in key producing southern states.

Emerging spot demand, restricted arrivals of quality turmeric and next year crop concern limiting the downside.

NCDEX accredited warehouses turmeric stocks gained by 9 tonnes to 705 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 6120 rupees gained 27.15 rupees.