NCDEX Turmeric under fresh buying ; Support seen at 6322

Technically Turmeric market is under fresh buying as market has witnessed gain in open interest by 0.23% to settled at 12820 while prices up 24 rupees.

Now NCDEX Turmeric is getting support at 6322 and below same could see a test of 6280 level, And resistance is now likely to be seen at 6398, a move above could see prices testing 6432.

Turmeric on NCDEX settled up by 0.38% at 6362 on the back of concerns that drought conditions and cold weather will affect the crop production. However, upside seen limited amid expectations of increase in arrivals at the spot markets in the coming days with better moisture content.

There are concerns that drought conditions and cold weather will adversely affect the production. Fresh arrivals are expected to increase at the spot market and will remain peak due to the harvesting activities.

Crop prospects have improved in Maharashtra and overall output is expected to be higher. Demand for turmeric is sluggish in physical as traders are not interested in old crop produce and are awaiting the commencement of new crop supplies, which are likely to hit markets soo.

There are yield concerns from few growing regions as drought conditions and cold weather has not supported the crop; however overall crop in the season will be higher due to increased area. Turmeric production is expected to be higher this season due to higher acreage in Telangana.

As per data released by Commerce Ministry, turmeric exports during the month of Oct 2018, up 33.7% on year to 10,486 tonnes (Vs 7,845 tonnes). Turmeric exports in 2018/19 (Apr-Oct) is up 13.3% at 70,033 tonnes compared to 67,129 last year for the same period. In Nizamabad, a major spot market in AP, the price ended at 6493.75 Rupees dropped 70.95 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6280-6432.

–Turmeric gained on the back of concerns that drought conditions and cold weather will affect the crop production.
–However, upside seen limited amid expectations of increase in arrivals at the spot markets in the coming days with better moisture content.
–There are concerns that drought conditions and cold weather will adversely affect the production.
–In Nizamabad, a major spot market in AP, the price ended at 6493.75 Rupees dropped 70.95 Rupees.
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