Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 13 August 2014

Turmeric settled up 0.15% at 6604 on short covering after prices dropped on weak demand due to poor quality of the crops. Domestic and overseas buyers stayed away from bulk purchases due to poor quality arrivals. The sowing of new crop is still a major concern in states like Andhra Pradesh, Telangana and Tamilandu due to delayed monsoon rainfall and poor price realization by cultivators. Similar trend is also observing in Maharashtra as not much sowing has been reported in Sangli. The total ending stocks of turmeric for 2014-15 are projected to reach record lows of 11 lakh bags due to weak domestic production and steady demand in local mandies. The receding stocks of turmeric in local mandies will encourage fresh buying from lower levels. Spot turmeric prices increased at Erode markets due to higher upcountry demand. Traders are showing interest in buying the hybrid turmeric, as they are having some orders for the same from North India. They purchased all the 700-and-odd bags of hybrid turmeric. They also evinced interest in buying the root variety turmeric and quoted Rs. 6,500 for the root variety. Last day, 3,800 bags of turmeric arrived for sale of which 2,420 were sold. At the Erode Turmeric Merchants Association sales yard, the finger turmeric fetched Rs. 4,226-6,489 a quintal and the root variety Rs. 4,039-6,419. In Nizamabad, a major spot market in AP, the price ended at 6260.5 rupees dropped -32 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 1.59% to settled at 15975 while prices up 10 rupee, now Turmeric is getting support at 6558 and below same could see a test of 6512 level, And resistance is now likely to be seen at 6636, a move above could see prices testing 6668.