Turmeric settled up 0.81% at 6470 due to lower rainfall and as spot demand outweighed large stocks. Improved Monsoon rains in the Southern states ensured sentiments remaining weak for the commodity for quite sometime. Spot turmeric prices in Erode markets are dropping due to slack North Indian demand and arrival of poor quality hybrid finger turmeric. Sources said that many traders prefer quality hybrid turmeric. The hybrid finger turmeric was sold at Rs. 8,509 a quintal on July 18, but within ten days the price decreased by Rs. 1,700. Traders in Erode are still waiting for orders from North India and so are buying limited stocks.

Of the 3,500 bags that arrived, 1,710 were sold. At the Erode Turmeric Merchants Association sales centre, the finger turmeric was sold at Rs. 4,199-6,469 a quintal; the root variety at Rs. 3,719-6,261. The Government is seriously thinking of introducing the e-trading or e-auction in the Regulated Marketing Committee either at Avalpoondurai or Perundurai. There are some problems for buyers from other States over the e-trading or e-auction of turmeric. Only the upcountry traders prefer the quality turmeric which could not be examined in the e-trading system.

In Sangli sources reported arrivals at 1000 quintals, down by 1000 quintals as compared to previous day. In Nizamabad reported arrivals at 2000 quintals, up by 500 quintals from previous day's arrivals. In Nizamabad, a major spot market in AP, the price ended at 6114.2 rupees dropped -5.8 rupees. Technically market is under short covering as market has witnessed drop in open interest by -0.87% to settled at 11345 while prices up 52 rupee, now Turmeric is getting support at 6350 and below same could see a test of 6230 level, And resistance is now likely to be seen at 6540, a move above could see prices testing 6610.

Trading Ideas:

Turmeric trading range for the day is 6230-6610.

Turmeric prices ended with small gains due to lower rainfall and as spot demand outweighed large stocks.

Improved Monsoon rains in the Southern states ensured sentiments remaining weak for the commodity for quite sometime.

Spot turmeric prices in Erode markets are dropping due to slack North Indian demand and arrival of poor quality hybrid finger turmeric.

In Nizamabad, a major spot market in AP, the price ended at 6114.2 rupees dropped -5.8 rupees.