Turmeric yesterday we have seen that market has moved 2.65% on strong physical market demand and weak arrivals. Bad weather is likely to affect the yield of the current crop. There were reports that Andhra Pradesh might get heavy rains in the next few days and it could damage standing turmeric crop. The area under turmeric cultivation is lower this year due to scant rainfall during the planting season and a shift in acreage to other crops, but higher carry-forward stocks are expected to keep supplies firm. As per market sources, turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags. This is mainly due to fragile sowing in major producing states such as Andhra Pradesh and Maharashtra. Moreover, dearth of selling by cultivators and strong offtake by investors also propelled strong gains in turmeric market. Most of traders and stockiest are anticipating the hike in Minimum Support Price of turmeric to Rs 10,000 per quintal in 2013 due to higher cultivation cost. The commodity is expected to move higher in medium term on the back of strong spot demand and weak production estimations. Turmeric arrivals in the Nizamabad mandi decreased to 250 bags from 1,200 bags and arrivals in the Erode mandi jumped to 5,000 bags from 4,000 bags. In Nizamabad, a major spot market in AP, the price ended at 5666.5 rupees dropped by -31.5 rupees. Market has opened at 6726 & made a low of 6662 versus the day high of 6950. The total volume for the day was at 25330 lots and the open interest was at 30010.Support for turmeric is at 6723 below that could see a test of 6549. Resistance is now seen at 7011 above that could see a resistance of 7125.

Trading Ideas:

Turmeric trading range for the day is 6549-7125.

Turmeric ended with good gains on strong physical market demand and weak arrivals.

Bad weather is likely to affect the yield of the current crop.

Turmeric arrivals in Nizamabad decreased to 250 bags from 1,200 bags and arrivals in Erode jumped to 5,000 bags from 4,000 bags.

In Nizamabad, a major spot market in AP, the price ended at 5666.5 rupees dropped by -31.5 rupees.