Long liquidation seen in NCDEX Turmeric

Turmeric market is under long liquidation as market has witnessed drop in open interest by 2.64% to settled at 12715 while prices down 60 rupees.

Now NCDEX Turmeric is getting support at 6394 and below same could see a test of 6330 level, And resistance is now likely to be seen at 6516, a move above could see prices testing 6574.

Turmeric on NCDEX settled down by 0.92% at 6458 amid lower than expected exports and higher sowing turmeric areas of Tamilnadu, Karnataka and Maharashtra. 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. The prices of the both varieties of turmeric were increased.

The sale and price has been increased due to some local demands. The price of the finger turmeric increased by Rs. 450 a quintal at the Regulated Marketing Committee, Rs. 200 a quintal at the Erode Turmeric Merchants Association Sales yard and Rs. 100 a quintal at the Erode Cooperative Marketing Society.  In Nizamabad, a major spot market in AP, the price ended at 7195.45 Rupees dropped 45.45 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6330-6574.
–Turmeric dropped amid lower than expected exports and higher sowing turmeric areas of Tamilnadu, Karnataka and Maharashtra.
–Turmeric sowing in all major producing states is higher than last year as weather remained favourable.
NCDEX accredited warehouses turmeric stocks dropped by 15 tonnes to 3447 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7195.45 Rupees dropped 45.45 Rupees.

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