Turmeric yesterday we have seen that market has moved -2.21% on profit-taking after the sharp rise in prices in the last two sessions but expectations of an increased demand from North Indian states during the ongoing winter season limiting downside. Industry officials expect higher turmeric production in 2012 due to an expansion in the area under cultivation and favourable weather conditions. Turmeric cultivation in the country usually starts by the end of May and continues till August and a lengthy harvesting season begins from January. Higher production prospects and better stocks could how-ever keep pressure on the market sentiments as markets trade with high volatility. Reports of stockists holding onto stocks at these lower levels as they anticipate rates improving in coming days. The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acreage from the high rates is stated the reason for the rise in expected production as per traders. In Nizamabad, a major spot market in AP, the price ended at 5136.05 rupees dropped by -19.3 rupees. Market has opened at 4800 & made a low of 4674 versus the day high of 4810. The total volume for the day was at 3965 lots and the open interest was at 9345. Support for turmeric is at 4646 below that could see a test of 4592. Resistance is now seen at 4782 above that could see a resistance of 4864.

Trading Ideas:

Turmeric trading range is 4592-4864.

Turmeric ended down on profit-taking after the sharp rise in prices in the last two sessions

Industry officials expect higher turmeric production in 2012 due to an expansion in the area under cultivation

NCDEX accredited warehouses turmeric stocks dropped by 35 tonnes to 3738 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5136.05 rupees dropped by -19.3 rupees.