Commodity Trading Tips for Turmeric by KediaCommodity

Ajay Kumar Kedia 2 September 2014

Turmeric settled down -2.15% at 6632 tracking weakness in spot demand amid profit booking after prices rose due to concerns over production due to scanty rainfall in key growing areas. The sale of turmeric in Erode has come down to fifty per cent for lack of demand. There was no fresh demand from North India. Traders purchased 1,450 bags of turmeric as against the arrival of 3,000 bags. Production in 2013-14 is reported around 40 lakh bags, down by 10-15%. Exports between Apr-Dec 2013 stood at 58,000 tn, higher than 49,526 tn in Apr-Dec 2012. Sowing of Turmeric in AP for the 2014-15 season is reported at 0.075 lakh ha, as against 0.08 lakh ha last year and a normal sowing of 0.09 lakh ha. Spot turmeric prices in Erode markets despite a long weekend since demand was slack. Spot turmeric prices in Erode markets despite a long weekend since demand was slack. Yesterday 5,000 bags of turmeric arrived for sale, but only fifty per cent stocks was sold. Sources are waiting for fresh demand from North India. The sowing of new crop is still a major concern in states like Andhra Pradesh, Telangana and Tamilandu due to delayed monsoon rainfall and poor price realization by cultivators. Similar trend is also observing in Maharashtra as not much sowing has been reported in Sangli. In Nizamabad, a major spot market in AP, the price ended at 6377.75 rupees gained 1.5 rupees. Technically market is under fresh selling as market has witnessed gain in open interest by 3.39% to settled at 5635 while prices down -146 rupee, now Turmeric is getting support at 6542 and below same could see a test of 6450 level, And resistance is now likely to be seen at 6738, a move above could see prices testing 6842.