Turmeric likely to move in a range of 6190-6290

Technically NCDEX Turmeric is getting support at 6210 and below same could see a test of 6190 level, And resistance is now likely to be seen at 6260, a move above could see prices testing 6290.

Turmeric on NCDEX settled down by 0.32% at 6228 expectation of higher production this season due to higher acreage in Telangana. Pressure also seen amid expectations of increase in arrivals at the spot markets in the coming days with better moisture content.

However, downside seen limited on the back of concerns that drought conditions and cold weather will affect the crop production. 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 soon. 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 6400 Rupees dropped 34 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6190-6290.
–Turmeric dropped expectation of higher production this season due to higher acreage in Telangana.
–Pressure also seen 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 6400 Rupees dropped 34 Rupees.
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