Turmeric settled up 0.57% at 6666 as support seen on an improvement in demand and concerns over production due to scanty rainfall in key growing areas. Turmeric prices dropped marginally despite increase in sales. Of the 3,500 bags on offer, 60 per cent was sold. Only the medium variety turmeric arrived for sale. The price of turmeric is also low in Nizamabad and Warangal. However, many buyers prefer Erode turmeric for its quality. Traders are expecting fresh orders from North India in a week. There was no improvement in the futures market. Due to arrival of quality hybrid finger turmeric, buyers quoted a higher price and it was up by Rs. 450 a quintal and the root variety by Rs. 150 a quintal. Other local varieties also increased by Rs. 100-150 a quintal. Buyers purchased all 430 bags of hybrid turmeric. At the Erode Turmeric Merchants Association sales yard, finger turmeric was sold at Rs. 4,119-6,209 a quintal, the root variety at Rs. 3,199-5,989. The traders said that this year turmeric production fell but the farmers are stocking more than 20 lakh bags, with an impression that the price may go up to Rs. 10,000 a quintal. At Nizamabad market total arrivals are at 2000 quintals, up by 500 quintals from previous trading day. In Nizamabad, a major spot market in AP, the price ended at 6405.55 rupees gained 33.05 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 12.18% to settled at 6910 while prices up 38 rupee, now Turmeric is getting support at 6582 and below same could see a test of 6500 level, And resistance is now likely to be seen at 6744, a move above could see prices testing 6824.

Trading Ideas:

Turmeric trading range for the day is 6500-6824.

Turmeric gains as support seen on an improvement in demand and concerns over production due to scanty rainfall in key growing areas.

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.

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 1489 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 6405.55 rupees gained 33.05 rupees.