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Saturday, October 23, 2021

NCDEX Turmeric under long liquidation; Support seen at 7072

Technically Turmeric market is under long liquidation as market has witnessed drop in open interest by 7.42% to settled at while prices down 42 rupees.

Now NCDEX Turmeric is getting support at 7072 and below same could see a test of 6942 levels, and resistance is now likely to be seen at 7280, a move above could see prices testing 7358.

Turmeric yesterday settled down by 0.58% at 7200 amid prospects of better crop this kharif season along with tepid demand. However downside seen limited following export demand from Europe, Gulf countries and Bangladesh.

The areas where turmeric has been sown have received adequate rainfall and are expected to produce well in the next season. Turmeric crops were severely damaged in Parbhani and Hingole due to heavy rains.

India is on course to having a normal monsoon, which will recharge the country’s main water reservoirs just enough, and ensure that the most important crops for the kharif season have normal sowing.

This is good news for agricultural production and food prices. Pressure also seen as the lockdown restrictions were eased the key Turmeric growing states, including Maharashtra and Telangana reported noticeable increase in mandi arrivals, which augmented physical market supplies and pressurized prices.

In the first 7 months of 2021, turmeric exports declined by 16% to 90,133 tonnes compared to the same period last year, but nearly 10% higher than the 5-year average.

There may be concerns about crop damage due to excess rain in major producing states due to Cyclone Gulab. In Nizamabad, a major spot market in AP, the price ended at 7112.5 Rupees dropped 6.2 Rupees.

Trading Ideas:
–Turmeric trading range for the day is 6942-7358.
–Turmeric dropped amid prospects of better crop this kharif season along with tepid demand.
–In the first 7 months of 2021, turmeric exports declined by 16% to 90,133 tonnes compared to the same period last year
–The areas where turmeric has been sown have received adequate rainfall and are expected to produce well.
–In Nizamabad, a major spot market in AP, the price ended at 7162.5 Rupees dropped 68.2 Rupees.

Courtesy: Kedia Commodities

Source: Comodity Online

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