Turmeric on NCDEX settled up by 0.76% at 6626 on short covering after prices dropped on higher turmeric output due to good sowing and favorable weather conditions at the producing belts. According to trade sources turmeric output is expected to be around 600,000 ton. New crop arrivals are pouring in Nizamabad market albeit in small quantity and with high moisture content. However, this has led to bearish sentiment in the market. Prices in coming days are expected to remain under pressure with arrivals improving and stockiest selling. India exported about 51,147 ton turmeric during Apr-Aug 2016-17 up by 32% on year, as per the data released by commerce ministry. At Warangal market, total arrivals are at 100 bags, steady as against previous day’s arrival. At Nizamabad market, total arrivals are at 2000 quintals, up by 800 quintals from previous trading day. Spot turmeric prices decreased at Erode markets as only medium and poor quality produce arrived for sale. The arrivals increased, but the sale remains at 60 per cent. This is due to the arrival of medium and poor quality turmeric. Around 3,200 bags arrived for sale and 50 per cent of the stocks were sold. The finger variety was down Rs. 400 a quintal and the root variety by Rs. 350. Due to adverse seasonal condition and failure of seasonal rains in Tamil Nadu, the production of the spice decreased this year. In Nizamabad, a major spot market in AP, the price ended at 7225 rupees gained 3.1 rupees.Technically now Turmeric is getting support at 6574 and below same could see a test of 6520 level, And resistance is now likely to be seen at 6658, a move above could see prices testing 6688.

Trading Ideas:

Turmeric trading range for the day is 6520-6688.

Turmeric prices gained on short covering after prices dropped on higher turmeric output due to good sowing.

New crop arrivals are pouring in Nizamabad market albeit in small quantity and with high moisture content.

At Nizamabad market, total arrivals are at 2000 quintals, up by 800 quintals from previous trading day.

In Nizamabad, a major spot market in AP, the price ended at 7225 rupees gained 3.1 rupees.