Turmeric settled flat on weak demand coupled with higher stocks with traders. Demand for turmeric is very weak though there could be some recovery in prices next week on hopes of a rise in demand during the winter season. Turmeric export of India in April 2012 increased by 1% to 7,300 tons, according to Spices Board of India. Exports were at 7,230 tons in April 2011. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010-11. India' s Erode is expected to produce 55 lakh bags of turmeric a rise of 29% as compared to previous year. Due to heavy rains in August and September, the fear of a steep decline in acreage due to drought has eased and is putting pressure on 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. 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. However, improved rainfall and weak overseas demand restricted the upside. Some local demand has come from north India but overseas enquiries are still weak. In Nizamabad, a major spot market in AP, the price ended at 5975 rupees dropped by -169.85 rupees. Market has opened at 5650 & made a low of 5630 versus the day high of 5692. The total volume for the day was at 2665 lots and the open interest was at 16860. Support for turmeric is at 5627 below that could see a test of 5597. Resistance is now seen at 5689 above that could see a resistance of 5721.

Trading Ideas:

Turmeric trading range for the day is 5597-5721.

Turmeric settled flat on weak demand coupled with higher stocks with traders.

Demand for turmeric is very weak though there could be some recovery in prices next week on hopes of rise in demand

NCDEX accredited warehouses turmeric stocks gained by 130 tonnes to 10910 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 5975 rupees gained by 95.2 rupees.