Turmeric under fresh buying; Resistance seen at 6754

Turmeric market is under fresh buying as market has witnessed gain in open interest by 1.39% to settled at 12800 while prices up 58 rupees.

Now NCDEX Turmeric is getting support at 6646 and below same could see a test of 6594 level, And resistance is now likely to be seen at 6754, a move above could see prices testing 6810.

Turmeric on NCDEX settled up by 0.87% at 6700 on expectation of improving upcountry demand in coming weeks. However, upside seen limited amid increased acreage of turmeric in Tamilnadu, Karnataka and Maharashtra and slip in exports.

According to farmers and traders this year production in Maharashtra can be less than last year. Deficit rainfall in Maharashtra and Karnataka affected Turmeric standing crop.

Lower rainfall reported in Maharashtra Marathwada turmeric growing regions like Hingoli, Sangli, Nanded, Basmath affect Turmeric standing crop.

Turmeric output this year is expected to be higher in the states of Tamilnadu, Karnataka and Maharashtra.

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 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 an area 18,000 hectares up from 14,000 hectares a year ago.

Turmeric exports during the month of September were up 16.5% to 9,064 tons compared to 7,783 tons in the corresponding period a year ago, according to Ministry of Commerce data.

Turmeric exports during Apr-Sep jumped 10.6% to 65,547 tons compared to 59,285 in the same period a year ago. favourable.In Nizamabad, a major spot market in AP, the price ended at 7060.4 Rupees gained 21.75 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6594-6810.
–Turmeric gained on expectation of improving upcountry demand in coming weeks.
–According to farmers and traders this year production in Maharashtra can be less than last year.
–NCDEX accredited warehouses turmeric stocks gained by 99 tonnes to 3289 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7060.4 Rupees gained 21.75 Rupees.

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