Turmeric prices decreased due to profit booking in anticipation of an increase in domestic supply

In anticipation of an increase in local supplies, the price of turmeric yesterday decreased by 0.2% to 8034 as profit was booked. In anticipation of a price decline, traders are also displaying less interest in the current price levels and refraining from mass purchasing. Given that farmers are receiving a fair price for their produce, supplies in Maharashtra and Telangana are anticipated to rise. Due to poorer production prospects and delayed monsoon forecasts, price declines appear to be contained.

The monsoon is expected to arrive three days later than expected, according to the India Meteorological Department’s forecast. The southwest monsoon, which typically begins over Kerala on June 1st, is anticipated to arrive on June 4. When compared to the same period in the previous year, the amount of turmeric shipped from April through March 2023 increased by 11.34 percent to 170,085.36 tonnes.

Turmeric exports increased by 27.04% from 14,806.30 tonnes in February 2023 to around 18,810.47 tonnes in March 2023. Around 18,810.47 tonnes of turmeric were exported in March 2023 as compared to 15,740.36 tonnes in March 2022, a 19.50% increase. According to data from Spices Board India, the production of spices in India is anticipated to have decreased by 1.5% on an annual basis to 10.9 mln tn in 2021–2022 (Jul–Jun).

Technically, the market is in long liquidation as evidenced by the drop in open interest (down -0.91% to settle at 12575) and the decline in prices (down -16 rupees). Currently, Turmeric is receiving support at 7968, and a move below that level could result in a test of the 7904 levels. Meanwhile, resistance is now likely to be seen at 8118, and a move above could result in a test of the 8204 levels.

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