Commodity Trading Tips for Turmeric by Kedia Commodity
Turmeric yesterday settled up 0.59% at 4780 recovered from the day's low while market opened gap down to test 4670 weighed by high stocks in the physical market and a likely rise in production. Prices have already corrected a lot for the commodity and with skies slowly clearing up in some parts of North India also. As per market sources, timely rainfall in major turmeric producing states such as Maharashtra, Tamilnadu and Andhra Pradesh led to steady sowing progress of turmeric crop in the current season. The major areas of Erode have already completed 40% of their sowing, while Maharashtra has completed 45-50% of their sowing for the current years. The futures prices were also pressurized by comfortable stocks in local mandies. Sources estimated the total stocks of around 60-62 lakh bags in the major mandies. This will easily meet up the local demand of turmeric in the next 5-6 months. The forecast of better sowing in Andhra Pradesh may pressurize turmeric prices. As per Andhra Pradesh Agriculture Department reports, acreage under turmeric in the state so far stood at 34963 hectares, 13.1 percent higher when compared to the last year. As per trade source, a turmeric export in 2013-14 year is estimated to be flat in terms of volume at 75000-80000 tons, but revenue may raise 20-30 percent to 6.5-7bn Rupees. technically market is under short covering as market has witnessed drop in open interest by -0.45% to settled at 23025 while prices up 28 rupee, now Turmeric is getting support at 4702 and below same could see a test of 4625 level, And resistance is now likely to be seen at 4824, a move above could see prices testing 4869. TURMERIC
Turmeric trading range for the day is 4621-4865.
Turmeric prices dropped weighed by high stocks in the physical market and a likely rise in production.
Timely rainfall in Maharashtra, Tamilnadu and Andhra Pradesh led to steady sowing progress of turmeric crop.
Sources estimated the total stocks of around 60-62 lakh bags in the major mandies.
In Nizamabad, a major spot market in AP, the price ended at 5046.7 rupees dropped -40.8 rupees.
BUY TURMERIC SEPT @ 4700-4750 SL 4620 TGT 4820-4940. NCDEX (BTST)