Turmeric likely to move in a range of 6354-6474

Turmeric is getting support at 6378 and below same could see a test of 6354 level, And resistance is now likely to be seen at 6438, a move above could see prices testing 6474.

Turmeric on NCDEX settled down by 0.12% at 6404 on late profit booking after prices gained amid good demand from spot domestic markets. Pressure also seen on increased acreage of turmeric in Tamilnadu, Karnataka and Maharashtra and slip in exports.

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 hectares 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 hectares 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.

Turmeric exports in 2018-19 (Apr-Sep) is up by 10.6% at 65,547 ton compared to 59,285-ton last year for the same time. As per reports, standing crop likely to damage around 10 – 20% currently, if higher temperature will continue next 15 – 20 day’s 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. During the October, arrivals of turmeric have been higher at 12,478 t (Vs 10,978 t) compared last year, as per data.

As per data released by Commerce Ministry, turmeric exports during the month of Sep 2018, up 16.5% on year to 9,064 tonnes (Vs 7,783 tonnes). In Nizamabad, a major spot market in AP, the price ended at 7033.35 Rupees dropped 30.95 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6354-6474.
–Turmeric dropped on late profit booking after prices gained amid good demand from spot domestic markets.
–Pressure also seen on increased acreage of turmeric in Tamilnadu, Karnataka and Maharashtra and slip in exports.
–NCDEX accredited warehouses turmeric stocks dropped by 806 tonnes to 2523 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7033.35 Rupees dropped 30.95 Rupees.

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