Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 25 August 2014

Turmeric settled down -1.23% at 6610 due to profit booking at higher levels and low demand is pressurizing the sentiments. Demand is expected to pick up in coming days-both on the domestic front from North India (as skies clear up) and on the export front. Spot turmeric prices fell in Erode market as arrival far exceeded demand. Only medium variety turmeric arrived for sale. Traders purchased 3,900 bags of the 7,500 that arrived. Till Ganesh Chathurthi prices will rule around Rs. 6,400 a quintal and after that demand is expected from North India. The price of hybrid finger variety turmeric rose by Rs. 600 a quintal and hybrid root turmeric gained by Rs. 200. All the 2,600 bags of hybrid variety turmeric were sold. At the Erode Turmeric Merchants Association Sales yard, the finger turmeric fetched Rs. 4,083-6,369 a quintal, the root variety was sold at Rs.4,036-6,299. Production in 2013-14 is reported around 40 lakh bags, down by 10-15%. Sowing of Turmeric in AP for the 2014-15 season is reported at 0.075 lakh ha, as against 0.08 lakh ha last year and a normal sowing of 0.09 lakh ha. 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. In Nizamabad, a major spot market in AP, the price ended at 6330.95 rupees gained 2 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 1.35% to settled at 15750 while prices down -82 rupee, now Turmeric is getting support at 6563 and below same could see a test of 6517 level, And resistance is now likely to be seen at 6673, a move above could see prices testing 6737.