Reduced Supply in the Spot Market Supports Turmeric Gains

The market’s recent performance for turmeric is a result of a combination of demand dynamics, supply-side restrictions, and technical factors that affect price changes. Even if it ended the day 2.4% higher at 15330, the increase is limited by slower buying activity before the release of stocks in preparation for the start of fresh crops.

Although there has been a decrease in supply on the spot market, worries about a delayed new crop harvest and tighter ending stockpiles are keeping optimism high for the foreseeable future. On the other hand, there was a noticeable drop in imports in November 2023 as compared to October 2023, suggesting a change in the dynamics of trade and perhaps having an impact on circumstances inside domestic markets.

Broader elements like weather patterns and geopolitical happenings can have an impact on the market. With a 3.36% rise in open interest to close at 13985, the market appears to be seeing new purchasing from a technical standpoint.

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