Turmeric settled up 1.42% at 6578 amid rising export demand in the spot market despite a revival in monsoon rains in key producing southern states. Emerging spot demand, restricted arrivals of quality turmeric and next year crop concern also supported prices. In Nizamabad sources reported arrivals at 2500 quintals, up by 500 quintals from previous day’s arrivals. In Sangli estimated market supply was at 1000 quintals, down by 100 quintals as compared to previous day. In Erode sources reported arrivals at 5000 quintals, higher by 1000 quintals from previous trading day. 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.

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. In Nizamabad, a major spot market in AP, the price ended at 6095.45 rupees dropped -24.55 rupees.

Technically market is under short covering as market has witnessed drop in open interest by -5.63% to settled at 11315 while prices up 92 rupee, now Turmeric is getting support at 6509 and below same could see a test of 6441 level, And resistance is now likely to be seen at 6623, a move above could see prices testing 6669.

Trading Ideas:

Turmeric trading range for the day is 6441-6669.

Turmeric prices gained amid rising export demand in the spot market despite a revival in monsoon rains in key producing southern states.

Emerging spot demand, restricted arrivals of quality turmeric and next year crop concern also supported prices.

In Nizamabad sources reported arrivals at 2500 quintals, up by 500 quintals from previous day’s arrivals.

In Nizamabad, a major spot market in AP, the price ended at 6095.45 rupees dropped -24.55 rupees.