NCDEX Turmeric under fresh selling; Resistance seen at 6638

Turmeric market is under fresh selling as market has witnessed gain in open interest by 1.17% to settled at 13005 while prices down 20 rupees.

Now NCDEX Turmeric is getting support at 6578 and below same could see a test of 6554 level, And resistance is now likely to be seen at 6638, a move above could see prices testing 6674.

Turmeric on NCDEX settled down by 0.3% at 6604 on profit booking after prices gained amid concerns that drought condition in Maharashtra and Karnataka will affect standing crop.  As per reports, standing crop likely to damage around 10 – 20% currently, if higher temperature will continue next 15 – 20 days damage percentage may go up to 30-40%.

Moreover, turmeric sowing in all major producing states is higher than last year as weather remained favourable. According to the Department of Horticulture and Plantation Crops of Tamil Nadu, acreage of turmeric in Erode may jump nearly 80% on year to 5,300 hectare in 2018-19 (Jul-Jun) because of very good rainfall this year and availability of other water sources.

In Telangana, turmeric acreage rose to 47,790 hectare compared to 44,956 hectare a year ago, state government data showed. In Andhra Pradesh, farmers planted turmeric over area 18,000 hectares, up from 14,000 hectares a year ago.

However, there are drought condition in Maharashtra and Karnataka affect Turmeric standing crop. Deficit rainfall reported in Maharashtra Marathwada turmeric growing regions like Hingoli, Sangli, Nanded, Basmat etc. affecting turmeric standing crop.

As per local trade information, standing crop likely to damage around 10 – 20% currently, if higher temperature will continue next 15 – 20 days damage percentage may go up to 30 – 40%.  In Nizamabad, a major spot market in AP, the price ended at 7235 Rupees dropped -6.65 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6554-6674.
–Turmeric prices dropped on profit booking after prices gained amid concerns that drought condition in Maharashtra and Karnataka will affect standing crop.
–As per reports, standing crop likely to damage around 10 – 20% currently, if higher temperature will continue next 15 – 20 days.
–NCDEX accredited warehouses turmeric stocks dropped by 2961 tonnes to 3472 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7235 Rupees dropped 6.65 Rupees.

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