Turmeric yesterday we have seen that market has moved 1.32% on thin arrivals as farmers were holding on to their produce in expectation that prices will rise in the coming months. Supplies are falling in all key spot markets. Many farmers are holding stocks. They are expecting prices to rise. Demand is modest from stockists. Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states. Moreover, traders have also reported the weak demand of turmeric during the summer season from the northern states. This has also added some selling pressure in the turmeric market. The total average arrivals of turmeric in all the major mandies were reduced to 8000-10000 bags in the last one week. India's area under turmeric fell by around 20% in 2012-13. Domestic production is expected to be around 45-50 lakh bags, out of which 37 lakh bags (80kg) may be considered as carry forward stock, according to the trade sources. Prices are expected to move around Rs.7,500-8,500 per 100 kgs till May-June period and later the price movement will be based on the monsoon. There are expectations of improvement in overseas demand ahead of Ramadan. Unseasonal rains in Andhra Pradesh have damaged around 9240 tons of turmeric production earlier. India's export destinations are primarily the Middle East countries, EU countries and the ASEAN countries. India exported 79,500 tonnes of turmeric with Rs 73,434.40 Lakh during 2011-2012 year. In Nizamabad, a major spot market in AP, the price ended at 6016 rupees gained by 2.35 rupees. Market has opened at 5948 & made a low of 5874 versus the day high of 6048. The total volume for the day was at 12025 lots and the open interest was at 24030.Support for turmeric is at 5895 below that could see a test of 5797. Resistance is now seen at 6069 above that could see a resistance of 6145.

Trading Ideas:

Turmeric trading range for the day is 5797-6145.

Turmeric edged higher on thin arrivals as farmers were holding on to their produce in expectation that prices will rise

Turmeric output is estimated to be lower this year because of reduced plantation area in leading cultivating states.

NCDEX accredited warehouses turmeric stocks gained by 336 tonnes to 3031 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 6016 rupees gained by 2.35 rupees.