Turmeric yesterday we have seen that market has moved -0.98% due to mounting stocks, weak exports and bearish cues from local markets where demand was almost negligible. The acreage under turmeric cultivation is lower compared with last year, but delayed rains have helped the growth of the crop. Turmeric arrivals in the Nizamabad mandi decreased to 700 bags from 1,000 bags over previous close and arrivals in the Erode mandi remained unchanged at 2,500 bags. Demand is sluggish because the crop condition is good and an above average crop is expected next year. The acreage under turmeric cultivation is lower compared with last year, but delayed rains have helped the growth of the crop. As per the market sources, steady rainfall in the major turmeric producing states such as Maharashtra and Andhra Pradesh witnessed strong stockiest selling. Sources have revised the total turmeric production to 60 lakh bags from the previous estimates of 48 lakh bags. Moreover, comfortable carryover stocks of 45-46 lakh bags at the major mandies also added some selling in futures market. Turmeric has been sown in 0.57 lakh hectares in Andhra Pradesh as on 29 September 2012, down nearly 15% from normal area of 0.67 lakh. In Nizamabad, a major spot market in AP, the price ended at 5278.25 rupees dropped by -7.15 rupees. Market has opened at 5502 & made a low of 5416 versus the day high of 5524. The total volume for the day was at 5370 lots and the open interest was at 14050. Support for turmeric is at 5416 below that could see a test of 5362. Resistance is now seen at 5524 above that could see a resistance of 5578.

Trading Ideas:

Turmeric trading range for the day is 5362-5578.

Turmeric dropped due to mounting stocks, weak exports and bearish cues where demand was almost negligible

Acreage under turmeric cultivation is lower compared with last year, but delayed rains have helped the growth of crop.

NCDEX accredited warehouses turmeric stocks gained by 49 tonnes to 8839 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5278.25 rupees dropped by -7.15 rupees.