NCDEX Turmeric under short covering; Resistance seen at 7364

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Technically Turmeric market is under short covering as market has witnessed drop in open interest by 3.91% to settled at 14145 while prices up 144 rupees.

Now NCDEX Turmeric is getting support at 7170 and below same could see a of 7058 level, And resistance is now likely to be seen at 7364, a move above could see prices testing 7446.

Turmeric on NCDEX settled up by 2.02% at 7280 on improving demand from the up-country markets amid new season crops. 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. 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 6748.4 Rupees gained 79.65 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 7058-7446.
–Turmeric prices rallied on improving demand from the up-country markets amid new season crops.
–Currently, buyers are active in the spot amid supply of new crop.
–The new turmeric supply in Andhra Pradesh Duggirala market has already started.
–In Nizamabad, a major spot market in AP, the price ended at 6748.4 Rupees gained 79.65 Rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com