Turmeric fell due to rains over parts of Andhra Pradesh, the top producer of the spice, and on a drop in overseas enquiries. Enquiries from north India have also slowed down at these prices. Farmers slashed the area under turmeric cultivation this season, following a sharp decline in prices that started last year. Turmeric is planted between June and August and takes about nine months to harvest. Farmers have reduced supplies on hopes of further rise in prices. Reports of stockists holding onto stocks supported the rates at these levels. With export demand from Pakistan and domestic demand reported at the lower levels and apprehensions continuing over the rains in AP. The fall in acreage has lowered better output prospects. The latest report from Andhra Pradesh Agriculture Department showed that Turmeric acreage under the state as of 22 August 2012 stood at 49349 hectares, down compared with 62330 hectares reported same period last year. The arrivals in the Nizamabad mandi remain unchanged at 1,500 bags and arrivals in Erode slumped to 3,000 bags from 7,000 bags. In Nizamabad, a major spot market in AP, the price ended at 5460.3 rupees dropped by -122.1 rupees. Market has opened at 5616 & made a low of 5550 versus the day high of 5724. The total volume for the day was at 5420 lots and the open interest was at 18320.Support for turmeric is at 5564 below that could see a test of 5470. Resistance is now seen at 5738 above that could see a resistance of 5818.

Trading Ideas:

Turmeric trading range for the day is 5470-5818.

Turmeric fell due to rains over parts of Andhra Pradesh and on a drop in overseas enquiries

Enquiries from north India have also slowed down at these prices.

NCDEX accredited warehouses turmeric stocks gained by 9 tonnes to 10341 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5460.3 rupees dropped by -122.1 rupees.