Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 30 July 2014

Turmeric settled down -1.99% at 6418 amid profit booking after prices seen supported due to lower rainfall and as spot demand outweighed large stocks. Spot turmeric prices decreased in Erode markets due to slack North Indian demand. Virtually no trader received fresh orders from merchants in North India and also the price of the yellow spice decreased with the futures market. Local traders selectively purchased fine varieties by quoting a lower price. If traders receive good demand form North India, prices may increase. Yesterday, 5,400 bags of turmeric arrived for sale and 2,690 were sold. At the Erode Turmeric Merchants Association, the finger turmeric fetched Rs. 4,232-6,481 a quintal; the root variety Rs. 3,899-6,329. At the Regulated Market Committee, the finger turmeric ruled at Rs. 5,639-6,659; the root variety Rs. 5,531-6,587. Of the 861 bags on offer, 758 were traded. The market sources suggested that the sowing of new crop is still a major concern in states like Andhra Pradesh and Tamilandu due to delayed monsoon rainfall and poor price realization by cultivators in the last marketing season. Similar trend is also seen in Maharashtra as not much sowing has been reported in Sangli and Nanded districts. Sources added that receding stocks in local mandies also provided some support to futures prices. In Nizamabad, a major spot market in AP, the price ended at 6120 rupees gained 50.55 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 5.78% to settled at 11445 while prices down -130 rupee, now Turmeric is getting support at 6358 and below same could see a test of 6297 level, And resistance is now likely to be seen at 6510, a move above could see prices testing 6601.