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Monday, October 18, 2021

NCDEX Turmeric under fresh buying ; Support seen at 6124

Technically Turmeric market is under fresh buying as market has witnessed gain in open interest by 0.56% to settled at 11745.

NCDEXow Turmeric is getting support at 6124 and below same could see a test of 6086 level, And resistance is now likely to be seen at 6190, a move above could see prices testing 6218.

Turmeric on NCDEX settled up by 0.2% at 6160 on the back of concerns that drought conditions and cold weather will affect the crop production. However, upside seen limited on higher supplies prospects from new season crop limiting the downside.

There is expectation of higher production this season due to higher acreage in Telangana. There are concerns that drought conditions and cold weather will adversely affect the production. Production is forecasted at 11.5 lakh tonnes in the 1st advance estimates by the government little higher then to last year production.

Fresh arrivals are expected to increase at the spot market and will remain peak due to the harvesting activities. Crop prospects have improved in Maharashtra and overall output is expected to be higher.

Demand for turmeric is sluggish in physical as traders are not interested in old crop produce and are awaiting the commencement of new crop supplies, which are likely to hit markets soon. There are yield concerns from few growing regions as drought conditions and cold weather has not supported the crop; however overall crop in the season will be higher due to increased area.

Turmeric production is expected to be higher this season due to higher acreage in Telangana. As per data released by Commerce Ministry, turmeric exports during the month of Oct 2018, up 33.7% on year to 10,486 tonnes (Vs 7,845 tonnes).  In Nizamabad, a major spot market in AP, the price ended at 6292.5 Rupees dropped 43.2 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6086-6218.
–Turmeric gained on the back of concerns that drought conditions and cold weather will affect the crop production.
–However, upside seen limited on higher supplies prospects from new season crop limiting the downside.
–There is expectation of higher production this season due to higher acreage in Telangana.
–In Nizamabad, a major spot market in AP, the price ended at 6292.5 Rupees dropped 43.2 Rupees.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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