Turmeric settled up 1.6% at 6740 as a delay in sowing due to late monsoon rains have raised concerns about lower production. Besides, limited inventories in the physical market on account of restricted supplies from producing regions too supported turmeric prices uptrend. Hybrid turmeric prices improved on Wednesday following good demand. Yesterday more than 500 bags of quality hybrid finger variety turmeric arrived for sale. The commodity fetched increased price. The traders also bought local root variety at increased prices. Sources are expecting fresh orders from North India after Vinayagar Chathurthi. Yesterday, of the 4,000 bags offered for sale, 1,920 bags were sold. The price of hybrid finger turmeric was raised by Rs. 800 a quintal and of the hybrid root by Rs. 200. The prices of other local varieties of turmeric fell by Rs. 200 due to arrival of medium and poor quality. At the Erode Turmeric Merchants Association sales yard, the finger turmeric was sold at Rs. 4,240-6,269 a quintal, root variety at Rs. 4,009-6,224. At Erode market sources reported arrivals at 3200 quintals, down by 1800 quintals as against previous day. At Nizamabad market total arrivals are at 1500 quintals, steady as against previous day’s arrival. Production in 2013-14 is reported around 40 lakh bags, down by 10-15%. EIn Nizamabad, a major spot market in AP, the price ended at 6376.25 rupees gained 73.65 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 15.08% to settled at 5455 while prices up 106 rupee, now Turmeric is getting support at 6661 and below same could see a test of 6581 level, And resistance is now likely to be seen at 6817, a move above could see prices testing 6893.

Trading Ideas:

Turmeric trading range for the day is 6594-6906.

Turmeric prices ended with gains as a delay in sowing due to late monsoon rains have raised concerns about lower production.

Besides, limited inventories in the physical market on account of restricted supplies from producing regions too supported turmeric prices.

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.

In Nizamabad, a major spot market in AP, the price ended at 6376.25 rupees gained 73.65 rupees.