Turmeric Dropped as New Season of Turmeric is Arriving in the Market

  • Commodities Analysis
  • Editors Pick
AJAY KEDIA

Turmeric yesterday settled down by -1.69% at 8746 as new season turmeric is arriving in the market and exports are normal this season. As per first advance estimates by the Govt for the 2021/22 season, the production of turmeric is pegged at 11.76 lakh tonnes in 2021-22 against 11.24 lt in 2020-21. As per govt data, turmeric exports in Jan 2022 are down by 25% m/m at 10,600 tonnes Vs 14275 tonnes in Dec 2021. In Feb, turmeric exports recorded lower by 17% on year at 10400 tonnes vs 12,575 tonnes while in FY 2021/22 (Apr-Feb), exports were down 20% at 1.37 lakh tons compared to last year but higher by 8.3% compared with the 5-year average. Turmeric crop was damaged in Maharashtra, Nizamabad in Telangana, and Kadapa in Andhra Pradesh due to rains and cyclones.    
 
The farmers, who incurred losses during this period due to low prices, are hoping to get a good price this year so that they could clear their dues to some extent. The market sentiment is buoyant mainly since the ending stocks are expected to be 17-18 lakh bags (50 kg each) this year against 25 lakh bags last year. Spices Board data showed turmeric production this year is projected at 11.01 lakh tonnes against 11.78 lakh tonnes last year, mainly on the output being affected in Telangana, Karnataka, Tamil Nadu (NS: TNNP ), Assam, and Haryana. In Nizamabad, a major spot market in AP, the price ended at 8864.7 Rupees dropped by -23.55 Rupees.   
 
Technically market is under long liquidation as the market has witnessed a drop in open interest by -2.92% to settled at while prices down -150 rupees, now Turmeric is getting support at 8604 and below same could see a test of 8462 levels, and resistance is now likely to be seen at 8996, a move above could see prices testing 9246.

Trading Ideas:
# Turmeric trading range for the day is 8462-9246.
# Turmeric dropped as new season turmeric is arriving in the market and exports are normal this season.
# As per first advance estimates, the production of turmeric is pegged at 11.76 lakh tonnes in 2021-22 against 11.24 lt in 2020-21.
# In FY 2021/22 (Apr-Feb), exports were down 20% at 1.37 lakh tons compared to last year but higher by 8.3% compared with the 5-year average.
# In Nizamabad, a major spot market in AP, the price ended at 8864.7 Rupees dropped by -23.55 Rupees.

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