Turmeric yesterday we have seen that market has moved 0.49% on late short covering after prices dropped tracking weakness on weak demand coupled with higher stocks with traders. 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. Turmeric production for the year 2011-12 is projected at historical high of 90 lakh bags 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. In Nizamabad, a major spot market in AP, the price ended at 5975 rupees gained by 95.2 rupees. Market has opened at 5640 & made a low of 5504 versus the day high of 5768. The total volume for the day was at 6490 lots and the open interest was at 16270. Support for turmeric is at 5541 below that could see a test of 5391. Resistance is now seen at 5805 above that could see a resistance of 5919.

Trading Ideas:

Turmeric trading range for the day is 5391-5919.

Turmeric gained on late short covering after prices dropped tracking weakness on weak demand coupled with higher stocks

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

NCDEX accredited warehouses turmeric stocks gained by 40 tonnes to 10950 tonnes.

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