Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 25 July 2014

Turmeric settled up 0.69% at 6444 on improved demand at lower levels against restricted arrivals of quality turmeric and next year crop concern. However improved weather conditions in the growing areas in AP and TN capped the gains. Prices of hybrid finger turmeric fell further on Wednesday as the quality of arrivals was not up to mark. Arrivals increased to 5,000 bags on Wednesday, but only medium quality turmeric arrived for sale. Sources, after examining the samples, bought 2,890 bags. But they quoted lower prices for the hybrid finger turmeric and purchased only 80 per cent of the total arrival of hybrid turmeric due to quality problems. Hence, they are bringing larger quantities of turmeric for sale. Arrivals will keep increasing in the coming days. And if quality turmeric is on sale, traders will quote higher prices. But if only medium and lower grade turmeric is available, prices will continue to remain depressed. The price of hybrid finger turmeric decreased by Rs. 200 a quintal while other varieties remained stable. In Nizamabad arrivals were reported at 2000 quintals, higher by 500 quintals as against previous day. In Sangli mandi reported closed due to heavy rainfall, farmers were not bringing their produce. In Sangli growing regions, turmeric sowing almost completed and good monsoon shower from last ten days likely to increase sowing area in this regions. In Nizamabad, a major spot market in AP, the price ended at 6097.5 rupees dropped -21.95 rupees. Technically market is under short covering as market has witnessed drop in open interest by -2.83% to settled at 11330, now Turmeric is getting support at 6388 and below same could see a test of 6320 level, And resistance is now likely to be seen at 6500, a move above could see prices testing 6544.