Turmeric yesterday we have seen that market has moved 1.06% on short covering tracking gains in spot demand after prices dropped due to rains over parts of Andhra Pradesh, the top producer of the spice, and on a drop in overseas enquiries. Trading has been sluggish due to weakness in demand. 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. In Nizamabad, a major spot market in AP, the price ended at 5492.4 rupees gained by 32.1 rupees. Market has opened at 5600 & made a low of 5458 versus the day high of 5710. The total volume for the day was at 8770 lots and the open interest was at 18935.Support for turmeric is at 5535 below that could see a test of 5371. Resistance is now seen at 5787 above that could see a resistance of 5875.

Trading Ideas:

Turmeric trading range for the day is 5371-5875.

Turmeric ended higher on short covering tracking gains in spot demand after prices dropped due to rains over parts of Andhra Pradesh

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

NCDEX accredited warehouses turmeric stocks dropped by 80 tonnes to 10261 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5492.4 rupees gained by 32.1 rupees.