Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar 18 October 2013

Turmeric yesterday settled up 1.11% at 4756 driven by an improvement in spot market demand though upside was limited because of sluggish local demand and higher carry-forward stocks. Higher export demand as well as improved overseas enquiries also supported the uptrend. Demand from exporters has picked up at these levels, but prices are not showing a sharp upside because of huge stocks. Turmeric cultivation usually starts in the last week of May and continues until August. A lengthy harvesting process starts from January. The market sources mentioned that strong recovery in the futures prices in previous trading has encouraged the strong stockiest to liquidate their stocks in the physical mandies. The total carryover stocks of turmeric in major mandies were reported higher at 65 lakh bags, up almost 11 lakh bags from the last year in the same period. The total carryover stocks of turmeric in major mandies were reported higher at 67 lakh bags as on 24th September 2013 , up almost 13 lakh bags from the last year in the same period. Therefore, stockiest have reported strong selling activity in local mandies. The spot and futures prices were also daunted by favourable rainfall in major turmeric growing areas of Andhra Pradesh and Tamilnadu . This will encourage the better productivity of the crop in the current year. In the state of Andhra Pradesh, turmeric sowing had completed in nearly 0.53 lakh hectare as against the normal area of 0.68 lakh hectare. Technically market is under short covering as market has witnessed drop in open interest by -3.6% to settled at 16085 while prices up 52 rupee, now Turmeric is getting support at 4667 and below same could see a test of 4579 level, And resistance is now likely to be seen at 4827, a move above could see prices testing
4899.