Turmeric prices fell -1.41% to close at 14950, primarily due to weak purchasing activity in front of the expected stock release in advance of new crops in January 2024. Favorable weather circumstances put pressure on the market, which boosted crop conditions. The placement of Prime Minister Modi’s Turmeric Board in Telangana has raised worries among farmers in Maharashtra.
It is anticipated that the crop will be harvested between January and March, with acceptable crop conditions observed. Reduced supply and the present sluggish purchasing activity could support price stability. Still, one constraining aspect is the possibility of yield losses as a result of poor weather. Support is demonstrated by improved export prospects, which have contributed to a 25% rise in exports. This growth has been driven by rising demand in both developed and emerging markets.
Anticipations of a twenty to twenty-five percent reduction in turmeric seeding, mainly in Tamil Nadu, Maharashtra, Andhra Pradesh, and Telangana, are indicative of farmers’ changing priorities. Comparing Apr-Sep 2023 to the same period in 2022, the amount of turmeric exported rose by 4.14% to 92,025.16 tons. Turmeric closed at 13377.8 Rupees, up 1.09%, in Nizamabad, a significant spot market.
As seen by a 3.31% increase in open interest to settle at 12010, the market is technically experiencing new selling. Price fall of -214 rupees occurred despite the increase in open interest. A breach below the identified support level of 14760 for turmeric could result in a test of levels 14568. On the upside, 15254 is expected to provide resistance; a breakthrough here would indicate a test of 15556.
