Turmeric settled up 3.99% at 6464 amid rising export demand in the spot market. Prices also seen supported on the heels of weak rainfall projection for the current year coupled with strong export demand in local mandies.  The market sources suggested that possible decline in monsoon rainfall in the current year will discourage the sowing of turmeric crop in states like Andhra Pradesh and Karnataka. The IMD said that the country may get below normal monsoon this year. According to the IMD, there is a 60% possibility of El Nino during monsoon. Turmeric farmers association also expressed concern regarding the next year crop due to the weak rainfall as well as poor irrigation arrangements. This has prompted the strong buying in both spot and futures market. As per the latest data of Indian Spice Board, India exported a total quantity of 58,000 tonnes of turmeric valued Rs. 463.79 crore, up 17% in volume and 45% in value terms during April-December 2013 over same period last year. The market projected that the total production of turmeric in the current year is estimated at 52 lakh bags against 70 lakh bags that were estimated in the last year. The sources added that poor rainfall in Erode during the sowing period will reduce the total production of the turmeric crop in the current year. In Nizamabad, a major spot market in AP, the price ended at 5801 rupees dropped -7.35 rupees. Technically market is under fresh buying as market has witnessed gain in open interest by 4.51% to settled at 11705 while prices up 248 rupee, now Turmeric is getting support at 6301 and below same could see a test of 6139 level, And resistance is now likely to be seen at 6545, a move above could see prices testing 6627.

Trading Ideas:

Turmeric trading range for the day is 6139-6627.

Turmeric ended with gains amid rising export demand in the spot market.

Prices also seen supported on the heels of weak rainfall projection for the current year coupled with strong export demand in local mandies.

The market sources suggested that possible decline in monsoon rainfall in the current year will discourage the sowing of turmeric crop.

In Nizamabad, a major spot market in AP, the price ended at 5801 rupees dropped -7.35 rupees.