Turmeric settled down -0.71% at 6418 on profit booking amidst huge stocks of low-quality produce and a drop in buying interest. Barring a few spikes in prices here and there, traders are not aggressively quoting due to the quality.  In the Erode market, stocks were of poor quality, mostly the carried-over from the last two years. Few bouts of strong interest though emerged supported by quality arrivals. As against 2,700 bags (each bag is 100 kg) arrived on Tuesday, only half of them found buyers. However, a day ago, as against 2,100 bags that arrived, 1,700 bags were sold. In the Nizamabad market, some 2,000 bags of turmeric were sold against the arrival of 3,300 bags. Traders have procured little quantity as they are yet to receive fresh demand from north India. Still, only medium and poor quality turmeric is coming in for sale, making traders reluctant to stock it. Rains in the initial sowing period ie, July-end to August would determine the long-term price of the commodity. Farmers in the traditional growing belts of Tamil Nadu, Telangana and Andhra Pradesh would continue to sow it as it is exported and has better remunerative price. In Telangana's Nizamabad district, the area under turmeric sowing in the 2013-14 season dropped 20 per cent to 53,000 hectares as against the previous season's 68,000 ha. In Nizamabad, a major spot market in AP, the price ended at 5875 rupees gained 74 rupees. Technically market is under long liquidation as market has witnessed drop in open interest by -0.94% to settled at 11640, now Turmeric is getting support at 6323 and below same could see a test of 6255 level, And resistance is now likely to be seen at 6519, a move above could see prices testing 6647.

Trading Ideas:

Turmeric trading range for the day is 6265-6657.

Turmeric prices ended with losses on profit booking amidst huge stocks of low-quality produce and a drop in buying interest.

In the Erode market, stocks were of poor quality, mostly the carried-over from the last two years.

NCDEX accredited warehouses turmeric stocks gained by 10 tonnes to 490 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5875 rupees gained 74 rupees.