Turmeric under fresh selling; Resistance seen at 6860

Turmeric market is under fresh selling as market has witnessed gain in open interest by 0.19% to settled at 13365 while prices down 46 rupees.

Now NCDEX Turmeric is getting support at 6702 and below same could see a test of 6628 level, And resistance is now likely to be seen at 6860, a move above could see prices testing 6944.

Turmeric on NCDEX settled down by 0.67% at 6774 amid lack of demand in the spot market and expectations of higher arrivals. Fresh crop arrivals are expected to hit market in the month of January.

Besides, higher turmeric areas in major producing belts of Tamilnadu, Karnataka and Maharashtra also weighed. 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.  In Nizamabad, a major spot market in AP, the price ended at 7075 Rupees gained 35 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6628-6944.
–Turmeric prices dropped amid lack of demand in the spot market and expectations of higher arrivals.
–According to farmers this year production in Maharashtra can be less than last year.
–NCDEX accredited warehouses turmeric stocks dropped by 85 tonnes to 189 tonnes.
–In Nizamabad, a major spot market in AP, the price ended at 7075 Rupees gained 35 Rupees.

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