NCDEX Turmeric may trade between 6628-6836

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Technically NCDEX Turmeric is getting support at 6678 and below same could see a test of 6628 level, And resistance is now likely to be seen at 6782, a move above could see prices testing 6836.

Turmeric on NCDEX settled up by 0.39% at 6728  on improving demand from the up-country markets amid new season crops. However, upside seen limited amid increase in turmeric arrivals in all the markets of Erode.

Currently, buyers are active in the spot amid supply of new crop. The new turmeric supply in Andhra Pradesh Duggirala market has already started. However, the quantity is on the lower side because the farmers are not getting remunerative prices.

According to trader sources, old crop turmeric stocks with traders are expected around 20 lakh bags across the country. Worries over El Nino conditions have eased and there are indications of another year of robust monsoon rain, according to the latest assessment by the country’s weather office.

There were also concerns that drought conditions and cold weather will affect the crop production. Guntur district secretary J Ajay Kumar has demanded that the Central government to purchase turmeric at 10,000 per quintal.

He submitted a memorandum to the Spices Board officials to this effect in Guntur city. He said the cost of cultivation of turmeric has increased and the farmers are not getting a remunerative price for their produce.

As per Commerce Ministry, turmeric exports during the month of January, down 11.4% y/y to 7,774 tonnes (Vs 8,773 t). However, for Apr-Jan period exports up 18% at 1.10 lakh tonnes compared to 93,350 tonnes last year for the same period.  In Nizamabad, a major spot market in AP, the price ended at 6525 Rupees gained 25 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6628-6836.
–Turmeric prices gained on improving demand from the up-country markets amid new season crops.
–However, upside seen limited amid increase in turmeric arrivals in all the markets of Erode. 
–The new turmeric supply in Andhra Pradesh Duggirala market has already started.
–In Nizamabad, a major spot market in AP, the price ended at 6525 Rupees gained 25 Rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com