Turmeric under short covering; Resistance seen at 7013

Turmeric market is under short covering as market has witnessed drop in open interest by 0.67% to settled at 14020 while prices up 176 rupees.

Now NCDEX Turmeric is getting support at 6775 and below same could see a test of 6637 level, And resistance is now likely to be seen at 7013, a move above could see prices testing 7113.

Turmeric on NCDEX settled up 2.61% at 6914 on short covering and expectation of improving domestic demand. In recent session prices seen some pressure amid increased acreage of turmeric in Tamilnadu, Karnataka and Maharashtra and slip in exports.

Fresh arrivals have reached very few markets due to which demand in the physical market is sluggish as most of the traders want to stock new produce. According to farmers 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.As per data released by Commerce Ministry, turmeric exports during the month of Sep 2018, up 16.5% on year to 9,064 tonnes. Turmeric exports in 2018/19 (Apr-Sep) is up 10.6% at 65,547 tonnes compared to 59,285 last year for the same time.

Trading Ideas:
–Turmeric trading range for the day is 6636-7112.
–Turmeric gained on short covering and expectation of improving domestic demand.
–According to farmers this year production in Maharashtra can be less than last year.
–NCDEX accredited warehouses turmeric stocks dropped by 219 tonnes to 3070 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7044.3 Rupees gained 44.3 Rupees.

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