Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 28 August 2014

Turmeric settled down -0.68% at 6462 tracking weakness in spot demand after prices gained amid export enquiries. The late monsoon has pushed back turmeric sowing in the top cultivating areas, raising concerns about yields. Prices looks to remain supportive as delayed monsoon rainfall and poor price realization might keep turmeric acreage lower in the current year. 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. The buyers quoted decreased price because of poor quality. At Nizamabad market total arrivals are at 1500 quintals, up by 700 quintals from previous day’s arrivals. At Erode market estimated market supply was at 3500 quintals, lower by 1500 quintals as compared to previous day. Production in 2013-14 is reported around 40 lakh bags, down by 10-15%. Exports between Apr-Dec 2013 stood at 58,000 tn, higher than 49,526 tn in Apr-Dec 2012. In Nizamabad, a major spot market in AP, the price ended at 6302.6 rupees gained 7.6 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -0.76% to settled at 14310 while prices down -44 rupee, now Turmeric is getting support at 6390 and below same could see a test of 6317 level, And resistance is now likely to be seen at 6536, a move above could see prices testing 6609.