Turmeric settled flat at 6378 failed to recover after the prices slipped on Monday due to sluggish local and export demand also higher stocks and better crop prospects continued to weigh on the market sentiments. Up till now turmeric prices had correction nearly -8% in last 1 months fallen a lot however, traders anticipate further fall may be limited. But lack of strong demand is also keeping uptrend limited. However, with demand from North India and Export demand expected to rise in coming weeks, it can support the prices to some extent.

The ongoing revival in Monsoon rains in growing states of AP and TN has been keeping prices under check for quite some time. Arrivals in and Erode mandis were reported at 5,000 bags steady as against previous arrivals. Turmeric Gattah started at Rs. 5800-6100 per quintal, steady against previous close. Turmeric Sellem at Erode market started the day at Rs. 6000-6200 per quintal, steady as against previous close. Meanwhile sowing of Turmeric in AP for the 2014-15 season is reported at 0.113 lakh ha, as against 0.09 lakh ha last year and a normal sowing of 0.15 lakh ha.

The area in Telanaga stood at 0.444 lakh ha against 0.42 lakh ha last year. As per reports from Spice Board of India, production in 2013-14 is reported around 40 lakh bags, down by 10-15% while the estimated exports of Turmeric during April-December 2013 was pegged at 58000 MT, up by 17% same period previous year. In value terms, it was up by 45% at Rs 463.80 Cr. Technically market is under fresh buying as market has witnessed gain in open interest by 17.3% to settled at 12070 while prices up 4 rupee, now Turmeric is getting support at 6330 and below same could see a test of 6282 level, And resistance is now likely to be seen at 6436, a move above could see prices testing 6494.

Trading Ideas:

Turmeric trading range for the day is 6280-6492.

Turmeric failed to recover after the prices slipped due to sluggish local and export demand also higher stocks and better crop prospects

Ongoing revival in Monsoon rains in growing states of AP and TN has been keeping prices under check for quite some time.

Arrivals in and Erode mandis were reported at 5,000 bags steady as against previous arrivals.

In Nizamabad, a major spot market in AP, the price ended at 6338.15 rupees remains unchanged at0 rupees.