Turmeric yesterday we have seen that market has moved 4.03% on extended short-covering, helped by hopes of a pick-up in local demand during the forthcoming festivals. Hopes of a bigger-than-expected crop in addition to carry-over stocks and muted demand could restrict the gains, though. Turmeric sowing in Andhra Pradesh, India's biggest grower, was down nearly 3 percent on year at 67,000 hectares as on Sept 21 due to delayed and irregular rains in the initial phase of sowing. Turmeric production for the year 2011-12 is projected at 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010-11. Rains in growing areas in Andhra Pradesh and other nearby states have been pressurizing prices in apprehension of better crop prospects. Improved arrivals in AP have kept further pressure on the prices. Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc. In Nizamabad, a major spot market in AP, the price ended at 5268.15 rupees gained by 151.5 rupees. Market has opened at 4498 & made a low of 4436 versus the day high of 4590. The total volume for the day was at 14245 lots and the open interest was at 12995.Support for turmeric is at 4487 below that could see a test of 4385. Resistance is now seen at 4641 above that could see a resistance of 4693.

Trading Ideas:

Turmeric trading range is 4385-4693.

Turmeric gained on extended short-covering, helped by hopes of a pick-up in local demand

Turmeric sowing in Andhra Pradesh was down nearly 3 percent on year at 67,000 hectares as on Sept 21

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 8688 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5268.15 rupees gained by 151.5 rupees.