Turmeric yesterday settled up 4.02% at 4866 on value buying after prices hit a contract low in the previous session, while concerns over the quality of the crop in some areas due to excess rains supported the upside. Turmeric cultivation usually starts in June and continues until August. Heavy rains in some pockets could hit the quality of the crop. A lengthy harvesting process begins in January. Heavy rains in some small pockets could cause damage to the crop. But the damage would be compensated by the rise in area. Spot supplies have been around 1,500-2,000 bags (of 75 kg each) at Nizamabad. Traders do not expect any sharp rise because carry forward stocks are huge and demand is sluggish. The forecast of better sowing in Andhra Pradesh may pressurize turmeric prices. As per Andhra Pradesh Agriculture Department reports, acreage under turmeric in the state so far stood at 34963 hectares, 13.1 percent higher when compared to the last year. As per trade source, turmeric exports in 2013-14 year is estimated to be flat in terms of volume at 75000-80000 tons, but revenue may rise 20-30 percent to 6.5-7 bn Rupees. The major areas of Erode have already completed 40% of their sowing, while Maharashtra has completed 45-50% of their sowing for the current years. The futures prices were also pressurized by comfortable stocks in local mandies. In Nizamabad, a major spot market in AP, the price ended at 5038 rupees dropped -263 rupees. Now Turmeric is getting support at 4731 and below same could see a test of 4597 level, And resistance is now likely to be seen at 4933, a move above could see prices testing 5001.
Trading Ideas:
Turmeric trading range for the day is 4597-5001.
Turmeric gained on value buying amid concerns over the quality of the crop in some areas due to excess rains supported the upside.
Spot supplies have been around 1,500-2,000 bags (of 75 kg each) at Nizamabad.
NCDEX accredited warehouses turmeric stocks gained by 100 tonnes to 8695 tonnes.
In Nizamabad, a major spot market in AP, the price ended at 5037.5 rupees dropped -262.5 rupees.
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