NCDEX Turmeric under fresh selling; Resistance seen at 6748

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Technically Turmeric market is under fresh selling as market has witnessed gain in by 3.71% to settled at 11735 while prices down 24 rupees.

Now NCDEX Turmeric is getting support at 6638 and below same could see a test of 6594 , and resistance is now likely to be seen at 6748, a move above could see prices testing 6814.

Turmeric on NCDEX settled down by 0.36% at 6682 as good rainfall is expected to boost sowing. Meteorological Department has forecast southwest monsoon to reach most parts of the country in the coming days due to formation of low pressure area over north Bay of Bengal.

Area under cultivation is expected to rise this year in anticipation of good weather conditions in key growing regions. Government raised turmeric output for 2018-19 to 13.89 lakh tons in the second advance estimates from 11.49 lakh tons in the first advance estimates.

Government procurement in some states coupled with improving demand for exports will support price rise. Turmeric output in Erode, which had slumped last year on the back of two consecutive droughts, is set to witness a rebound, if planting area is any indication.

Turmeric exports during the month of April, little down 1.61% y/y to 10,744 tonnes (Vs 10,919 t), as per govt data. While, turmeric exports in first 4-months in 2019, up by 10% to 42,000 tn compared to 38,171 tn.

Country exported about 1.33 lakh tonnes of turmeric in 18-19 compared to 1.11 lt last year. In 2018/19, production is forecast at 10.77 lt in the 3rd advance estimates by the government. In Nizamabad, a major spot market in AP, the price ended at 6425 Rupees gained 4.15 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6594-6814.
–Turmeric prices dropped as good rainfall is expected to boost sowing.
–Area under cultivation is expected to rise this year in anticipation of good weather conditions in key growing regions.
–Government raised turmeric output for 2018-19 to 13.89 lakh tons in the second advance estimates from 11.49 lakh tons in the first advance estimates.
–In Nizamabad, a major spot market in AP, the price ended at 6425 Rupees gained 4.15 Rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com