Turmeric Gains on Good Domestic and Export Demand

  • Commodities Analysis
  • Editors Pick
AJAY KEDIA

Turmeric yesterday settled up by 5.98% at 9608 on good domestic and export demand, besides fears of heavy rains have affected the new crop due next month. However upside seen limited as pressure is seen amid poor demand for old stocks as traders wait for the new season of turmeric. The sentiment improved on reports of damage to the crop in Telangana and Andhra Pradesh. 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. This year, the crop was also lower compared with last year, he said. Also, the quality of the produce was not good, resulting in price gaining.  
 
Spices Board data showed turmeric production this year being 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 view of the heavy rains in the growing areas, particularly in Maharashtra, the next crop’s yield could be lower. Spices Board data show turmeric exports lower by 26 percent in volume during the first half of the current fiscal at 77,245 tonnes valued at ₹860.31 crores against 1.04 lakh tonnes valued at ₹903.31 crores during the same period a year ago. In Nizamabad, a major spot market in AP, the price ended at 8755 Rupees gained 330 Rupees.  
 
Technically market is under fresh buying as the market has witnessed a gain in open interest by 16.64% to settled at 6800 while prices up 542 rupees, now Turmeric is getting support at 9220 and below same could see a test of 8832 levels, and resistance is now likely to be seen at 9802, a move above could see prices testing 9996.  

Trading Ideas:
# Turmeric trading range for the day is 8832-9996.
# Turmeric gained on good domestic and export demand, besides fears of heavy rains have affected the new crop due next month.
# The sentiment improved on reports of damage to the crop in Telangana and Andhra Pradesh.
# However upside seen limited as pressure seen amid poor demand for old stocks as traders wait for the new season of turmeric.
# In Nizamabad, a major spot market in AP, the price ended at 8755 Rupees gained 330 Rupees.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search

Related Articles