Turmeric on NCDEX settled up by 0.29% at 6904 amid short covering after prices dropped amid expectations of bumper crop. India's turmeric output in 2016-17 (Jul-Jun) is expected to rise because of better rainfall this season in key growing areas such as Maharashtra, Telangana, Karnataka and Tamil Nadu. Traders are expecting turmeric production in Maharashtra to be around 1.2-1.5 million bags (Each bag of 70 kgs) as against 0.8- 1 million bags in the previous year. According to Andhra Pradesh Agriculture Department, area under turmeric in the state as of Sep 21 stood lower at 14,304 hectares against 15,405 hectares last year. In Telangana area under turmeric stood higher at 46,000 hectare. Sowing has also increased in other producing states such as Maharashtra, Odisha and Karnataka. Next year's crop may be bumper due to favourable weather conditions in all the producing centres. Turmeric production for the current crop year (2015-16) is estimated to be around 315,000 tons compared to the previous year production of 324,000 tons. India's Apr-Jun turmeric export jumped 20% to 29,000 tons due to increase shipment to gulf countries. Because of arrival of quality turmeric, the price of the commodity increased at Erode markets. Farmers brought 15 bags (one lot) of superior quality Salem hybrid variety turmeric and the traders quoting Rs. 10,000 a quintal procured all the bags. In Nizamabad, a major spot market in AP, the price ended at 7451.45 rupees gained 6.45 rupees.Technically market is under short covering as market has witnessed drop in open interest by -3.53% to settled at 14200 while prices up 20 rupee, now Turmeric is getting support at 6856 and below same could see a test of 6806 level, And resistance is now likely to be seen at 6970, a move above could see prices testing 7034.

Trading Ideas:

Turmeric trading range for the day is 6806-7034.

Turmeric prices ended with gains amid short covering after prices dropped amid expectations of bumper crop.

India's turmeric output in 2016-17 (Jul-Jun) is expected to rise because of better rainfall this season in key growing areas.

NCDEX accredited warehouses turmeric stocks dropped by 1265 tonnes to 5804 tonnes.

In Nizamabad, a major spot market in AP, the price ended at 7451.45 rupees gained 6.45 rupees.