Turmeric under fresh selling; Support seen at 6582

Turmeric market is under fresh selling as market has witnessed gain in open interest by 6.3% to settled at 17710 while prices down 28 rupees.

Now NCDEX Turmeric is getting support at 6582 and below same could see a test of 6508 level, And resistance is now likely to be seen at 6750, a move above could see prices testing 6844.

Turmeric on NCDEX settled down by 0.42% at 6654 on the back of fresh season arrivals and good production prospects. However, higher demand for standing crop in the physical market capped downside momentum

Buyers and traders have purchased all the good quality turmeric to fulfil demand and some traders have decided to store few bags of best quality turmeric.

In 2018/19, production is forecast at 11.5 lt in the 1st advance estimates by the government. However, farmers in key growing states are trying to build pressure on the government to start procurement of the spice.

There were also concerns that drought conditions and cold weather will affect the crop production.  Farmers have demanded the Tamil Nadu Government procure turmeric from farmers at Rs. 12,000 a quintal immediately. Swathantira Raju, President, of a small and marginal farmer’s association, in a statement demanded the State government procure all the turmeric with the farmers at Rs. 12,000 a quintal.

As per Commerce Ministry, turmeric exports during the month of January, down 11.4% y/y to 7,774 tonnes (Vs 8,773 t). However, for Apr-Jan period exports up 18% at 1.10 lakh tonnes compared to 93,350 tonnes last year for the same period. In 2018/19, production is forecast at 11.5 lt in the 1st advance estimates by the government. In Nizamabad, a major spot market in AP, the price ended at 6538.1 Rupees gained 40 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6508-6844.
–Turmeric prices dropped on the back of fresh season arrivals and good production prospects.
–However, higher demand for standing crop in the physical market capped downside momentum.
–In 2018/19, production is forecast at 11.5 lt in the 1st advance estimates by the government.
–In Nizamabad, a major spot market in AP, the price ended at 6538.1 Rupees gained 40 Rupees.

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