Turmeric settled up 0.28% at 7270 but overall market was trading in the range as support seen from lower levels on good demand from the domestic as well as overseas buyers coupled with crop concerns in Andhra Pradesh, while pressure seen on the hope that increasing arrivals and huge carryover stocks. Arrivals in Nizamabad and Erode were reported at 14,000 bags and 2,000 bags on Monday. Sowing of Turmeric in AP for the 2013-14 season is reported at 0.53 lakh ha, as against 0.68 lakh ha last year and a normal sowing of 0.68 lakh ha. Production in 2012-13 is reported around 45 lakh bags, down by 40-50%. Current year's carryover stocks are estimated around 10 lakh bags. (1 bag= 75 kgs). Exports between Apr-Sept 2013 stood at 38,500 tn, higher than 37,736 tn in Apr-June 2012. While AP Turmeric Farmers Association (APTFA), which is spearheading an agitation of turmeric farmers in the State, has demanded the Central government to fix the Minimum Support Price (MSP) for the crop and set up a turmeric development board on the lines of the Spices Board. In Nizamabad, a major spot market in AP, the price ended at 6463.55 rupees gained 25.05 rupees. Technically market is under short covering as market has witnessed drop in open interest by -1.11% to settled at 16525 while prices up 20 rupee, now Turmeric is getting support at 7187 and below same could see a test of 7105 level, And resistance is now likely to be seen at 7325, a move above could see prices testing 7381.

Trading Ideas:

Turmeric trading range for the day is 7106-7382.

Turmeric ended with gains on short-covering amid lower arrivals while upside was limited on account of good supplies from the new-season crop

The fresh arrivals in local mandies along with higher production estimates in the current year

Concerns about the quality and yield of the crop due to a cold wave and rains in some parts of the leading cultivating areas capped the losses

In Nizamabad, a major spot market in AP, the price ended at 6463.55 rupees gained 25.05 rupees.