Turmeric yesterday we have seen that market has moved 0.28% on the back of rising demand in the domestic markets for the ongoing festive seasons. Though sufficient stocks with the traders have pressurized prices. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags in 2010- 11. Erode is expected to produce 55 lakh bags of turmeric a rise of 29% as compared to previous year. The arrivals in the Nizamabad mandi slumped to 800 bags from 1,500 bags and arrivals in the Erode mandi decreased to 4,000 bags from 5,000 bags. Rains in Central India had been pressurizing the market sentiments but unwillingness of traders releasing stocks in the mandis provided support to the market. 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 5588 rupees gained by 95.6 rupees. Market has opened at 5700 & made a low of 5640 versus the day high of 5812. The total volume for the day was at 6900 lots and the open interest was at 18535.Support for turmeric is at 5611 below that could see a test of 5539. Resistance is now seen at 5783 above that could see a resistance of 5883.

Trading Ideas:

Turmeric trading range for the day is 5539-5883.

Turmeric gained on the back of rising demand in the domestic markets for the ongoing festive seasons

Turmeric production for 2011-12 is projected at historical high of 90 lakh bags compared to 69 lakh bags

NCDEX accredited warehouses turmeric stocks gained by 201 tonnes to 10462 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5588 rupees gained by 95.6 rupees.